What does a trust lawyer do?
A lawyer who focuses on trust-related matters is known as a trust lawyer. A trust is a mechanism used in estate planning. A trust is established by a person known as a trustor or settlor. A trust instructs one or more people, known as the trustees, to keep the trustee’s property subject to specified duties to utilize and safeguard the property for the benefit of other people, known as the beneficiaries.
Trusts are established for a variety of purposes. These could be for the financial gain of the person who established the trust, financial assistance for a surviving spouse or young children, or for philanthropic purposes.
Why Is Having a Trust Attorney Important?
Trusts come in a wide variety of forms. Which one might be the greatest fit for your needs can be determined with the aid of a trust lawyer.
The most typical trusts that can be established are:
- A living or inter vivo trust. One of the most often established trusts is this one. While the settlor is still living, it is produced.
- A testamentary trust is another typical trust that is established by a will. It is frequently designed to be revocable so that the settlor can add or remove property at any time while they are still alive. Usually, it takes effect after the trust creator’s passing.
- The creation of a charitable trust serves the goal of donating and dedicating an individual’s assets or property to a charitable organization for the benefit of a certain charity or organization. Given that charitable trusts are viewed as being beneficial to the public, the standards for establishing them are typically more liberal than those for other trusts.
- A discretionary trust is one that gives the trustee, or the person in charge of managing the trust property, the authority to determine when and how the assets and property of the trust should be distributed to the beneficiaries.
- A special needs trust is set up to give a disabled person additional income while still enabling the person to receive government benefits.
- A land trust enables a trustee to hold title to a specific piece of land or property, giving the trustee the authority to manage the property and distribute income from the property.
- A spendthrift trust enables a trustee to hold title to a specific piece of land or property, protecting the property from debts or creditors and providing for the needs of another individual.
What other concerns do you have with trust law?
The establishment of a trust is subject to several conditions that must be met for the trust to be recognized as valid. These consist of:
Intent: The trust must have been intentionally created by the trustor, also known as the trustee, at the time it was established. The management of the trust for the beneficiary’s benefit and the distribution of the assets to the beneficiary must be assigned to a specific person. In the absence of such designation, the court may appoint such person.
Beneficiary: Who will get the trust’s assets must be specified in the trust.
Purpose: The trust’s aim must be clear and free from criminal activities, and it must have assets. Assets, such as cash or property, must be included in the trust. Assets are necessary for a trust to exist. There are some things that can’t be given to a trust. These comprise:
- Health savings accounts,
- Pension program,
- Retirement accounts,
- Life insurance policies.
Since the beneficiary designated in each policy will decide how to distribute these assets, they cannot be put into a trust. The trustee of the trust must be the specified beneficiaries of the policies for them to be included in the trust. What kind of assets you can put in a trust can be suggested by your trust lawyer.
If they are expressly listed in the trust agreement, anyone can be a beneficiary of a trust. A lot of people designate their wives, kids, and grandchildren as beneficiaries. Beneficiaries must be specific and certain. In other words, they must be determinable when the trust is established. The beneficiary must be sufficiently identified for the court to know who they are.
How Does Hiring a Trust Law Attorney Benefit You?
Employing a trust law attorney has several advantages. Your trust attorney can help you choose the right sort of trust for you and what you can put in it, regardless of how big or small your estate is. To ensure that your estate is safeguarded, your lawyer can also go over any possible tax repercussions and related legal requirements for the trust. Additionally, they can give you advice on the best steps to take to safeguard your assets in order to protect your family and dependents.