There are two basic forms of trusts: after-death (or testamentary) trusts and living (or inter vivos) trusts.
An after-death trust will spring into existence, usually by virtue of a will, after a person’s death. The assets to fund this type of trust must usually go through the probate process. In some cases this type of trust may need to be court-supervised even after the estate is closed. An example of an after-death trust would be a husband leaving property to a trust benefiting his wife in his will. The Will establishes the trust to which the property is transferred, to be administered by a trustee for the wife’s life, upon her death the property remaining is transferred to children born of their marriage.
A living trust, on the other hand, is a trust made while the person establishing the trust is still alive. In this case, a husband could establish a trust for his benefit and his wife’s benefit during their lifetime, designating himself as trustee.
Living trusts can be revocable or irrevocable. The most popular type of trust is the revocable living trust, which allows the individual to make changes to the trust during his or her life. Revocable living trusts avoid the often lengthy probate process and are non-public by nature. Alternatively, irrevocable trusts restrict control by the owner and are sometimes helpful in protecting assets from nursing home costs and estate taxes.
Attorney Tobin, an experienced Living Trust Attorney can discern whether a trust is advisable for your personal situation.
Contact us to arrange a free consultation with Living Trust Attorney Attorney Adam J. Tobin