What is a Trust?
Trusts are very flexible and can be used for any legal purpose. The grantor passes legal ownership of a specific property to a trustee with instructions as to how the property should be used for the benefit of the beneficiary(ies). Think of a trust as being somewhat like a box. The trust is the legal arrangement that contains the property and spells out the conditions of the trust. Each trust is unique.
The Big Difference between a Will and a Trust
Wills are invaluable, and everyone should take the time to make out a will. However, a trust can, in many situations, pass on the property to the beneficiaries cheaper and faster than a will.
Unlike a will, a trust does not need to go through probate, which can be an expensive and time-consuming process. In this case, we can trust an estate planning attorney in Lubbock, TX.
Trusts Provide an Effective Solution for Many Problems
A trust can be revocable, meaning the grantor can change or cancel the trust; or irrevocable, meaning that it cannot be changed or cancelled. There are specific considerations, such as taxes, that determine which is preferred in a specific situation.
A “living” trust is created during the lifetime of the grantor, while a “testamentary” trust is created after the death of the grantor. Maryland law allows for the creation of trusts for any legal reason, including:
• a private or family purpose;
• charitable giving or endowments;
• the management of property on behalf of family members;
• providing for orphaned children or disabled individuals;
• ensuring that money left to a child and intended for their education will not be used on a shiny new Porsche;
• preventing property from going through probate, and minimizing property transfer and estate taxes;
• controlling insurance properties;
• protecting the future of a family business;
• or to provide for the care of a family pet.
Kyra K. Blankenship Attorney is an experienced estate planning attorney in Lubbock, TX.
Browse their website to learn more about the advantages of a trust for your family or to schedule an appointment.
