Ham Lake MN Living Trust Attorney
Establish a Living Trust
A Trust can accomplish a vast array of goals: avoiding probate and legal battles, lowering estate and/or income taxes and protecting privacy. Trusts are not always the best solution, and it’s essential to carefully weigh the benefits and potential drawbacks.
The objective that an heir be provided for financially is the most customary 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 an efficient tool for supporting heirs who have mental impairments or otherwise lack investment experience. The trust document can establish that all money is controlled by a trustee with proven investment experience and judgment. Likewise, a trust can preserve assets when the beneficiary has a history of poor spending or invest habits. It can also protect assets against an heir’s poor choices, and even from judgments and other collection actions.
A “spendthrift” provision in a Living Trust is commonly used to further preserve the integrity of assets. It prohibits a recipient from transferring his or her interest and bars creditors from reaching into the trust. Living Trusts are fairly 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 Ham Lake, MN for all Living Trust Establishment Services.
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