There are many different types of trusts with different purposes. For example, there are Special Needs Trusts, which are designed to help provide for disabled individuals. There is also what is known as an irrevocable Life Insurance Trust, which can help provide funds to help pay estate taxes. The Revocable Living Trust is one of the most common trusts used for estate planning Beloit or Janesville WI.
A Revocable Trust is typically an alternative to wills in Beloit WI. When the trust is revocable, it can be amended or changed by the grantor (the person who created the trust) and it can even be terminated by the grantor. However, after the grantor’s death the trust cannot be changed. When a person or couple create the trust, they transfer their assets to the Trust. In the normal Revocable Trust, the grantors name themselves as trustee, although it is possible to appoint a trustee other than themselves. The trustee then manages and controls the assets of the trust. Ultimately, the assets are often held for the benefit of a third person, which is a beneficiary. The grantor or grantors can nominate a guardian for minors and set up a separate trust to manage the assets until the beneficiary reaches a specified age. The Revocable Trust will give instructions as to how the grantor wants his or her assets to be divided and distributed to the beneficiaries on the grantor’s death. A significant benefit of a trust is it can be used to avoid probate. Probate can become fairly expensive and time consuming, especially when compared to the cost of creating and terminating a trust.
Monahan & Johnson, S.C., an experienced trust attorney Beloit and Janesville WI, has drafted thousands of different types of trusts. We are ready to put our experience to work for you.