Trusts are one of the most powerful tools under Michigan law. Trusts are powerful because you can use a trust document to protect your assets, structure asset ownership in strategic ways, and provide strong protections for the people you love. There are many different kinds of trusts, and it is up to you which ones you use in order to receive the benefits that trusts can provide.
While trusts are a powerful legal tool, the use of trusts can also be complicated. You have to understand which trust is right for you, learn about advantages and limitations of different trusts, and follow Michigan rules for trust creation. You also cannot afford to make any mistakes during this process, because a mistake that is not discovered until it is too late could cost you your legacy.
Biddinger & Estelle, PC can provide you with invaluable help with the trust creation process. We can explain everything you need to know about trusts, help you to choose a trust that meets your goals, and assist you in making a trust that provides protection for you, your assets, and your loved ones. Give us a call at 989-872-5601 or contact us online to find out more about the ways in which we can help. We can offer personalized advice and answer questions including:
- Do I need a trust?
- How do trusts in Michigan protect me and my family?
- How can a Michigan trusts lawyer help me?
Do I Need a Trust?
Whether or not you need a trust is going to depend upon your financial situation, the potential risks to your assets, and your goals for your money and property. For most people, however, trust creation makes sense. You may need a trust if:
- You want to protect assets in case you require routine care in a nursing home: A trust can help you qualify for Medicaid coverage to pay for a nursing home without having to first spend all of your wealth to drop below allowable Medicaid resource limits.
- You want someone of your choosing to manage your assets in case of incapacity: You can name a backup trustee who can immediately begin managing assets, instead of forcing your family to go through guardianship proceedings and having a court decide who manages assets.
- You want to provide for minor children in case you pass away before they turn 18: You can name the trustee who will oversee the money, instead of the court appointing a guardian, and you can make sure an 18-year-old isn’t just handed a huge inheritance with no strings attached.
- You want to provide a financial gift or gift of property to someone who is disabled: Giving money or property to a disabled person could result in the loss of access to government benefits unless you use a specific type of special needs trust.
- You are concerned about the ability of heirs to successfully manage money and property you leave to them: A spendthrift trust can make sure money isn’t lost to creditors or bankruptcy. Trusts allow you much more continued control to make sure even irresponsible heirs don’t squander a legacy.
- You want assets to transfer outside of probate: The trust administration process can be faster, less costly, and easier than probate. This can be especially essential for those who wish to transfer a business or to transfer management-intensive investments, as new owners can take over responsibility in a much more timely manner.
- You want to try to reduce or avoid estate taxes: With the right type of trust, you could potentially avoid a big tax bill for your estate after death.
These are just some of the many reasons why you may need a trust. Trusts can do so many different things, it is always best to work with an experienced attorney who can help you to decide if trust creation is right for you.
How do Trusts in Michigan Protect You and Your Family?
Trusts in Michigan can protect you and your loved ones by making certain that your assets are not lost due to incapacity or high expenditures for nursing home care services. You can reduce the chances creditors will have access to trusts and you can find many ways to limit the potential for loss. You can even reduce the taxes which could be assessed after death.
In order to get any of these protections, though, you need to know which type of trust will meet your needs and you need to follow all of the formal rules for the creation of trusts in Michigan. You don’t want to discover after you need nursing care or when estate taxes are being assessed that you made a mistake, since you cannot correct the error at these times. You should make the smart choice and get legal help, and you should act as soon as you have assets to protect and a legacy to secure.
How can a Michigan Trusts Lawyer Help Me?
Biddinger & Estelle, PC has a comprehensive understanding of Michigan trust laws, and we know how to help clients use trusts to achieve their goals. To find out more about how our legal team can assist you with choosing a trust and following trust creation rules, give us a call at 989-872-5601 or contact us online today.