There are many different tools a person can use to create an estate plan in Michigan. One of which can include a trust. Simply put, a trust is an agreement between one individual, known as a trustor, and a third-party trustee. The trustee manages the trustor’s assets on behalf of their beneficiaries for a designated period of time. This may be an option during this time depending on the wants and needs of the person creating the plan. Continue reading below to learn more about trusts and contact an experienced Michigan estate planning attorney for assistance during this time.
What are the Pros of Setting up a Trust?
No one is required to make a trust in their estate plan. However, it can have certain benefits depending on what the individual wants. With a trust, it is possible to do the following:
- Plan for how your property and wealth will be distributed. This may be to individuals, organizations, or both. Transferring assets this way allows people to have more control over the process, letting it be paid out all at once or through staggered payments.
- Allow special needs beneficiaries to receive their inheritance from the estate without being barred from government assistance.
- Help manage assets while the individual is still living.
What are the Cons of Setting up a Trust?
It is important to note that there are also certain disadvantages to having a trust in Michigan. Generally speaking, there are higher preparation costs associated with a trust than there are with other estate planning tools. This is because a trustor is required to retitle their assets in the name of the trust, taking more time and money. If they fail to do so, the assets will have to go through probate instead. In addition to this, trusts do not offer special estate tax benefits or asset protection. If a creditor needs to collect a person’s assets, they can do so through a trust.
Using an Estate Planning Attorney
There are many ways an estate plan can be created, a trust only being one option. The tools a person may need can vary depending on their personal wishes for their estate. That is why it can be helpful to retain the services of a Michigan estate planning attorney for assistance during this time.
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 today to schedule a consultation.