In the last post, our lawyer in Raleigh NC explained what a trust is and how it can help you when planning your estate. One of the key factors in protecting a trust is establishing a trust protector. The position is different from a trustee because he or she is able to make changes to the trust, if they are needed. By allowing a second person to oversee the trust, it can add an additional layer of security in how the trust will be handled and distributed.
More Ways to Protect a Trust | Lawyer in Raleigh NC
Let’s continue the discussion to see other ways you can protect your trust. First, let’s look at the two of the types of trusts available.
Irrevocable or revocable trust?
A trust serves several purposes, including making sure that your assets go to your heirs and not your creditors. If this a concern, then your trust needs to be an irrevocable trust. Because you are no longer the owner, the assets are not subject to debts you may owe creditors. This also means you are not able to make changes to it.
A revocable living trust will not protect your assets because you are able to make changes or cancel it. It has other benefits as well. It is private, assets can be transferred in and out of it, and it can be used to provide for someone who would also qualify for public benefits without compromising eligibility. If any of these apply to your situation, it may be the best choice for you. However, if your main concern is protecting your trust from creditors as well as estate taxes, you may want to consider an irrevocable trust.
Both types of trusts allow you to determine who will be the trustee, and who will get your assets. Keep in mind that having a trust does not mean that you do not need a will. There are things such as your car or checking account that you may not want to be put into a trust. Your will can outline what happens to those assets upon your death.
To learn more about a trustee's duties, visit back with us during our next blog post. We will offer more information there.
Be sure to visit back with other blogs in this series to learn more about protecting trusts:
If you are not sure how to manage your finances in a trust, you can seek guidance from someone who has experience in estate planning such as an attorney from Eldreth Law Firm. A lawyer in Raleigh NC will be able to interpret the law and help you figure out the best plan of action when it comes to protecting your trust. For questions, contact us.