There are many personal documents that need to be included when preparing an estate plan. Trusts are one of the most important ones and allow individuals to control their assets and preserve them for their beneficiaries. If you have questions regarding estate planning involving trusts and how they might relate to bankruptcy, it is in your best interest to reach out to one of our skilled Michigan estate planning attorneys to learn more. At Collis, Griffor & Hendra, our mission is to ensure that you and your family’s futures are protected.
What are trusts?
A trust is a legal document that is used to manage certain assets. There are many components to trusts and who is involved. They include the following:
- Trustor: This refers to the person who creates the trust.
- Beneficiary: This is the person who will receive the assets allocated in the trust.
- Trustee: This is the third party assigned to manage the assets on behalf of the beneficiary.
What is the difference between revocable and irrevocable trusts in Michigan?
There are two kinds of trusts: revocable and irrevocable. Revocable trusts allow an individual to keep authority over their assets until the time that they pass away. When they pass away, their assets will immediately transfer to the beneficiaries that they chose when they decided who to convey their assets to. In contrast, an irrevocable trust transfers ownership of the assets right away. In some cases, spendthrift provision can be joined to the irrevocable trust to guard it against credit seizure, in the event that a beneficiary has to file for bankruptcy.
What are the benefits of creating trusts in Michigan?
Some of the benefits of creating an irrevocable trust in Michigan include the following:
- Asset protection
- Charitable estate planning
- Estate tax reduction
There are also various positives to estate planning with a revocable trust. Some of the gains include:
- They allow you to plan for potential mental incapacitation
- They help your family avoid the probate process
- They can help you protect your privacy
If you are going through the estate planning process and would like to learn more about which option is best for you and your family, do not hesitate to reach out to one of our experienced Michigan estate planning attorneys. Our legal team is prepared to help you through this process.
Contact our Firm
Sometimes, divorce, family, and estate matters are difficult to navigate. Fortunately, they do not have to be with the assistance of a compassionate, knowledgeable attorney who is willing to guide you every step of the way. If you need a seasoned firm to help you with any divorce, family, or estate-related matter, please do not hesitate to contact Collis, Griffor & Hendra today to schedule a consultation.