The administration of trusts and estates calls for being well-versed in more than one area of law. To start with, the person managing an estate or a trust must continuously track any changes in the properties’ value and status. In addition to that, they have to be aware of existing bodies of law related to trusts and estates and be aware of any recent updates in legal precedent that may be of relevance to a particular set of properties or accounts. At North City Law, our attorneys not only have years of experience in trusts and estate administration, but they also continuously strive to remain up to date on all relevant fields so that they can continue helping you protect the benefits of your wealth. Call us at 206-413-7288 or contact us online to set up your FREE consultation.
Trusts can be set up for a variety of important reasons. Firstly, transferring some of your assets into a trust can help avoid heavy taxation during your lifetime. Secondly, creating a trust enables you to exercise a degree of authority over how that wealth is going to be spent. For instance, you may want to set your children up for success with a generous trust fund, but may want to institute guidelines that will limit the way that money is spent or establish a timeline during which they can have access to their fund. A charitable trust can also be setup so that an organization with a mission you respect can inherit a portion of your wealth after your passing. Additionally, a trust may help your heirs bypass potential creditors. Finally, forming a trust can help you avoid facing probate court and thus, protect the privacy of your estate.
A trust can be revocable or irrevocable, with some benefits specific to each trust type. As the name suggests, as long as you’ve named yourself as one of its trustees, you can change the terms of a revocable trust during your lifetime and continue exercising control over what happens to the assets within the trust. An irrevocable trust’s terms cannot be changed after its execution, however, it can relieve you of estate tax, which may save you and your heirs a lot of money over time.
What Is a Trust Used For?
Depending on how large the assets in a trust are, state and federal tax liability may need to be satisfied when the wealth is finally administered. Money in a trust can also be used for any funeral arrangements for the decedent. Additionally, if any debt needs to be paid, wealth in trusts may have to be used to settle with the decedent’s creditors. After all of those obligations are fulfilled, the trust should be administered in accordance with the grantor’s original wishes.
Who Will Administer My Trust?
Usually, third parties are assigned responsibility for the administration of a trust. Banks, law firms, or specialized trust firms can all be named as administrators. In addition to being in charge of the assets distribution, they may also be in charge of tracking businesses or other sources of continuous revenue within the trust, making sure that all of them function in an orderly fashion and that the wealth in the trust is continuously increasing. Though having an organization involved in this otherwise typically private affair might be bothersome for some clients, most agree that the involvement of highly experienced specialists in such a complicated matter is in their own interest.
Call North City Law at 206-413-7288 today to ensure that your legacy is protected!