A Caro living trust lawyer can provide assistance with the creation of a trust. Trusts are very versatile and powerful estate planning tools that can provide important protections for your assets and your family. However, there are different trust types which serve very different purposes and which can have widely varying benefits and limitations.
You do not want to make the wrong type of trust because you will not get the protections you expect if you do make this mistake– and unfortunately, the mistake may not be discovered until after it is too late for you to correct the issue.
Biddinger & Estelle has provided advice on trust creation to clients throughout counties from St. Clair to Presque Isle along Michigan’s eastern shoreline, including the Thumb and northeast coast. If you live in or around these areas and you want assistance with the trust creation process, including with selecting the right type of trust, our legal team is here to provide the help you need.
What if You Make the Wrong Kind of Trust?
Since a trust is supposed to protect your assets and to protect your loved ones, selecting the wrong kind of trust could mean that you do not get the protections that you were hoping for.
Many people, for example, will work with a Caro living trust lawyer to create a revocable living trust. The creation of a revocable living trust is a smart choice if you want to make sure that a backup trustee or successor trustee can immediately begin managing trust assets if something happens to you (you will usually serve as the primary trustee for your own living trust). A living trust is also a good estate planning tool to use if your goal is to make sure that your assets are able to transfer outside of the probate process.
However, if you were counting on a living trust to help you avoid estate tax, you will not get this benefit because this type of trust does not accomplish that goal. Although the assets held within the living trust do pass outside of the probate process, the assets can still be counted for purposes of determining if you owe estate tax.
If you try to make a trust on your own and don’t talk to a lawyer first, you could fall victim to the common misconception that the revocable living trust will protect assets from estate taxes simply because the assets transfer through trust administration instead of probate. A substantial portion of your estate could end up going to pay taxes that you failed to take appropriate steps to avoid.
If you were counting on a living trust to help you to protect assets in case you need to go into a nursing home, you also will not get the expected benefits. Many people want to create a trust so the assets within the trust will not count as resources when determining if qualifying for means-tested Medicaid is possible. Being able to get Medicaid is important because, for many older people, Medicaid is the only source of payments for nursing home care. If you make a living trust thinking you’ll be able to get Medicaid to cover your nursing home care right away, you could end up facing losses because the trust won’t provide this kind of protection. There are other tools that do help you keep your assets secure, so you should make sure you work with a lawyer to know what the right approach is to protecting your assets in case you need Medicaid.
A living trust does have many significant advantages, including substantial flexibility and continued control over trust assets, even as you protect those assets from having to pass through probate or from being mismanaged in case of incapacity. However, you need to know what a living trust does – and does not – do so you can make smart choices about whether to create a living trust, an irrevocable trust, or some other kind of estate plan tool. Biddinger & Estelle knows all of the different tools that you can use to protect your wealth and we will help you to use the right estate planning documents to keep your legacy and family safe and secure in the future.
Getting Help from A Caro Living Trust Lawyer
Residents of Michigan’s Lake Huron shoreline communities count on Biddinger & Estelle to provide assistance with choosing the right asset protection and estate planning tools. Our legal team will carefully listen to your goals for protecting your assets and providing for your loved ones. Based on your desires for your end-of-life and legacy plan, we will help you to use the legal tools that best help you to accomplish your goals. To find out more about the ways in which Biddinger & Estelle can help you, give us a call at (989) 872-5601 or contact us online today.