Fridley MN Living Trust Attorney
Establish a Living Trust
A Trust can fulfill a wide range of goals: avoiding probate and legal battles, lowering estate and/or income taxes and protecting privacy. Trusts are not the best solution in every situation, and it’s important to carefully weigh the benefits and potential drawbacks.
The purpose that an heir be provided for financially is the most popular reason for creating a Trust. In the case of minors, a trust allows a parent to look after for a child in their absence while not giving the child control over the property. The parent can also mandate how the property is to be divided and for what purposes.
A trust is also an effective means for taking care of heirs who have mental impairments or otherwise lack investment experience. The trust document can establish that all money is controlled by a trustee with demonstrated investment judgment and expertise. Likewise, a trust can preserve assets when the beneficiary has shown a history of poor spending or invest habits. It can also protect assets against a recipient’s poor choices, and even from judgments and other types of collection actions.
A “spendthrift” provision in a Living Trust is often used to further sustain the integrity of assets. It prohibits an heir from transferring his or her interest and bars creditors from reaching into the trust. Living Trusts are easy to update, modify or revoke in most cases.
A Trust established by a Will is a testamentary Trust, and can achieve every purpose discussed above.
Serving Fridley, MN for all Living Trust Establishment Services.
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