A Bad Axe estate planning lawyer can provide information on trust creation to those who are creating an estate plan. Making a trust can allow you to provide much more control over what happens to all of the assets that you transfer into the trust. Trusts can be used to accomplish a wide variety of different purposes, including protecting assets during your own lifetime, making sure a minor can inherit in an appropriate way, and providing an inheritance for a disabled loved one without putting means-tested benefits like Medicaid at risk.
If you want to create an estate plan that includes a trust, you can get help from an experienced estate planning firm that has assisted countless clients in Michigan’s shoreline communities with creating all different types of trusts. We can make the trust creation process easy and ensure that your trust accomplishes all of your specific goals for the protection of your assets and the protection of your loved ones.
While trust creation should be simple with help from an experienced Bad Axe estate planning lawyer, it is not just the trust creator and the trustee (who is in charge of managing trust assets) that need to understand how a trust works. A beneficiary of a trust should also know what to expect if he or she receives an inheritance through a trust. Our legal team can help those who inherit to understand what their rights are and what, if any, limitations will affect how their inheritance is received. Give us a call today to find out more.
What Happens if You are a Trust Beneficiary?
The implications of inheriting assets that are held in trust will vary depending upon the trust type and depending upon the instructions that the trust creator (called the settlor) put into the trust document.
In some cases, when a trust creator has made a simple living trust for purposes of avoiding the probate process, you will simply inherit the assets after the trust administration process. Your major concern as a trust beneficiary under these circumstances will be to ensure that the trust administrator fulfills his fiduciary duty, takes care of trust assets during the trust administration process and facilitates the timely transfer of wealth to you.
In other cases, however, the creator of the trust may have imposed conditions or limitations on your inheritance. For example, if the trust that was created is a spendthrift trust, this means that the trust creator did not want you to have access to the actual trust assets and did not want you to inherit all at once because of a concern that the trust assets would be wasted. Under these circumstances, you may essentially be provided with an allowance from the trust while a trustee continues to manage trust assets.
If you are a beneficiary of a trust where you are given money on a set schedule, you may still wish to speak with an experienced attorney to make sure that the trustee who is managing the trust is following all of the legal requirements associated with managing the trust in a responsible way and making periodic payments from the trust in accordance with the trust creator’s wishes.
There are also other situations besides a spendthrift trust in which the trust creator may have limited when and how you receive trust assets or what you can do with those assets. For example, the trust creator may have placed specific conditions on an inheritance, such as allowing you to inherit only once you have turned 25 or allowing you to inherit only after you have fulfilled some obligation like graduating from college. An experienced attorney can help you to understand the conditions to be fulfilled and can help you to take appropriate action once you have fulfilled your obligations to make sure the trust assets are made available to you.
Getting Help from A Bad Axe Estate Planning Lawyer
A Bad Axe estate planning lawyer at Biddinger & Estelle will provide personalized one-on-one advice during the trust creation process so the right kind of trust can be created, so the trust is legally valid, so the right trustee and beneficiary are chosen, and so the trust accomplishes the creator’s goals. Our legal team can also offer advice to trust beneficiaries and can help them to ensure that the trustee is fulfilling his obligations under the law and as set forth in the trust document.
To find out more about the ways in which our firm can provide comprehensive help with trusts to clients in Michigan’s Lake Huron shoreline communities, give us a call at (989) 872-5601 or contact us online today.