A trust is a legal document that is used to manage certain assets. This can be an important aspect of estate planning. Read on to learn more about creating, modifying, and terminating trusts in Michigan.
Who is Involved in a Trust?
The three parties involved in the creation of a trust include:
- 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 Main Types of Trusts?
In Michigan, the main categories of trusts include:
- Revocable Living Trusts: can be altered and revoked by the trustor at any point, for any reason
- Irrevocable Trusts: can only be modified with permission from the beneficiary
Types of Trusts Available in Michigan:
Two of the most common types of trusts include:
- Special Needs Trusts: can be created to ensure that special needs family members are taken care of financially
- Charitable Trusts: allows the trustor to continue donating to charity after his or her passing
Can I Modify or Terminate a Trust?
When it comes to modifying or terminating a trust, it will depend upon which type of trust you have created. For example, you can modify revocable trusts. But, irrevocable trusts can be more difficult to modify. As a result, it is important to create the right type of trust. An experienced estate planning attorney can help you create the trust that works best for your unique situation. Reach out to our firm to speak with a skilled estate planning attorney today.
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