Andover MN Living Trust Attorney
Establish a Living Trust
A Trust can achieve many goals: avoiding probate and legal battles, lowering estate and/or income taxes and protecting privacy. Trusts are not the best solution in all cases, and it’s important to carefully weigh the benefits and potential drawbacks.
The desire that a descendant is provided for financially is the most common reason for creating a Trust. In the case of minors, a trust allows a parent to provide for a child in their absence without giving the child control over the property. The parent can also mandate how the property is to be distributed and for what purposes.
A trust is also a useful tool for supporting heirs who have mental impairments or lack investment experience. The trust document can establish that all money is controlled by a trustee with sound investment experience and judgment. Likewise, a trust can preserve assets when the recipient has a history of poor spending or invest habits. It can also protect the assets from an heir’s poor choices, and even from judgments and other collection actions.
A “spendthrift” provision in a Living Trust is often used to further preserve the integrity of assets. It prohibits the heir from transferring his or her interest and also bars creditors from reaching into the trust. Living Trusts are relatively easy to update, modify or revoke in most cases.
A Trust established by a Will is a testamentary Trust, and can achieve all of the purposes discussed above.
Serving Andover, MN for all Living Trust Establishment Services.
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