Some people believe that they can create a will and be done with the estate planning process. This is not the case. In order to have a complete estate plan, there are a number of important documents you will need to create. One of the most important estate planning documents is a trust. A trust is a legal document that is used to manage certain assets. Read on to learn more about the different types of trusts available in Michigan.
Who is Involved in a Trust?
When creating a trust, there are three main parties involved:
- Trustor: the person who creates the trust
- Beneficiary: the person who will receive the assets allocated in the trust
- Trustee: the third party assigned to manage the assets on behalf of the beneficiary
What are the Different Types of Trusts?
Everyone’s situation is different, therefore everyone has different estate planning needs. As a result, there are numerous types of trusts you can create. Some of the most common trusts include:
- Revocable Living Trusts: These trusts can be altered and revoked by the trustor at any point, for any reason. Your life may change over the years and your plans may change as well. A revocable living trust can be useful for an uncertain future.
- Irrevocable Trusts: These trusts can only be modified with permission from the beneficiary.
- Special Needs Trusts: These trusts can be created to ensure that special needs family members are taken care of financially. For example, leaving assets to a loved one with special needs in your will can actually do more harm than good– Doing so can cause your loved one to become ineligible for certain government benefits. Creating a special needs trust will allow you to leave assets to your loved one without disqualifying him or her from the necessary government benefits.
- Charitable Trusts: These trusts allow the trustor to continue donating to charity after his or her passing
These are just some of the trusts available in Michigan. If you are interested in creating a trust, reach out to our firm today. We understand that estate planning can be stressful, but we are here to address all of your questions and concerns and walk you through the process each step of the way.
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.