Greeley Trust Planning Attorney
Choosing the right type of trust is as important as creating one itself. There are so many pros you have to look at, and so many cons you have to bypass. It can be a very tiring process in its entirety. That’s where we come in. At Brady, McFarland & Lord, LLC, we have been assisting people with all of their trust planning needs for more than 20 years. We can help you determine which type of trust is best for you, and then we can help you set it up. As a full-service trust planning firm, our goal is to make this process as simple as possible for you. Call our office at (303) 420-2863 or contact us online to set up a free initial interview.
The Two Basic Types of Trust
It’s essential to learn the details of each type of trust so you can determine which kind of trust would fit your particular needs.
1. Revocable Trust
Just like the name implies, a revocable trust is a flexible type of trust. Anything you transfer into a revocable trust can be easily amended or revoked while the grantor is still alive. The income earned from this revocable trust goes to the grantor while they are alive and can only be transferred to the beneficiary in case of the grantor’s death. The grantor can change their beneficiary, remove or add any of their assets, change instructions, or even totally terminate the trust.
However, it’s important to note that anything that was transferred into the trust is automatically rendered irrevocable upon the grantor’s death. It’s also important to keep in mind that a revocable trust does not protect you and your assets from lawsuits and creditors.
2. Irrevocable Trust
An irrevocable trust is quite different from a revocable trust in many ways. When you create an irrevocable trust, the terms of the trust cannot be modified or amended without the consent of the grantor’s chosen beneficiary. Unlike the revocable trust, where the grantor is the only one who can make changes to the trust because they remain the sole owner until death, this is not the case for a revocable trust. If you transfer property into an irrevocable trust, for example, and later decide you wish to sell that property, it’s unlikely that you would be able to do this. However, in the case of a lawsuit, the assets you transferred into an irrevocable trust will be much more protected.
Which Trust Is Best for You?
There are advantages and disadvantages to both types of trusts, so it depends on your needs. If you aren’t sure what kind of trust you should set up, an experienced trust planning attorney can help you make this determination. However, consider the following when you are trying to make this decision. Some of the significant advantages of a revocable trust include its flexibility and the fact that you maintain control and ownership over the property or assets in the trust while you are alive. The major disadvantage is that it doesn’t act as an asset protection tool in the event of a lawsuit. Conversely, there is not much flexibility in irrevocable trusts, but they provide you with much more protection.
If you want more flexibility, and more wiggle room, then the revocable type will be best for you. It allows many chances for amendments and any other modifications you might want to make, unlike an irrevocable trust, where you can no longer make decisions concerning the assets alone.
Let Our Greeley Trust Planning Lawyers Help You
If you aren’t sure what type of trust is best for you, consulting with a trust planning attorney is a great idea. At Brady, McFarland, & Lord, LLC, our Greeley estate planning attorneys can help you determine your goals and needs and help you set up the appropriate trust. As a full-service trust planning firm, our goal is to make this process as simple as possible for you. Call our office at (303) 420-2863 or contact us online to set up a free initial interview.