There are many different tools a person can use to create an estate plan in Alabama. Depending on the individual, this may include a trust. Simply put, a trust is an agreement between one individual, known as a trustor, and a third-party trustee. The trustee manages the assets on behalf of the trustor’s beneficiaries for a certain period of time. Continue reading below to learn more about trusts and contact an experienced Michigan estate planning attorney for assistance during this time.
What are the Pros of Setting up a Trust?
No one is required to make a trust. It is up to the individual themselves. However, it can have certain benefits. With a trust, it is possible to do the following:
- Plan for how your property and wealth will be distributed. This may be to individuals, organizations, or both. Transferring assets this way allows people to have more control over the process, letting it be paid out all at once or through staggered payments.
- Allow special needs beneficiaries to receive their inheritance from the estate without being barred from government assistance.
- Help manage assets while the individual is still living.
What are the Cons of Setting up a Trust?
There are also certain disadvantages to having a trust in Alabama. Generally, there are higher preparation costs that come with creating a trust than there are with other tools. This is due to the fact that a trustor must retitle their assets in the name of the trust, taking time and money. The failure to retitle assets can cause them to have to go through probate instead. Trusts also do not offer special estate tax benefits or asset protection. In the event that a creditor needs to collect the individual’s assets, they can through a trust.
Using an Estate Planning Attorney
There are many ways an estate plan can be made, a trust only being one of them. The way a person may set up their estate plan can vary depending on their needs, which is why it is beneficial to retain the services of an attorney who can provide proper guidance.
Contact our Firm
Stone Crosby, P.C. has proudly served clients in Alabama for over 100 years. Our firm has experience handling matters including divorce and family law, estate planning and administration, business law, employment law, class actions, consumer protection, business law, real estate law, among many others. If you require quality legal representation, contact our firmtoday to schedule a consultation.