Planning for the future means taking a careful assessment of your needs and objectives, then creating plans that will help you meet your goals. Estate planning requires you to evaluate what is important for you and what you want to happen to your assets and property after you pass. If you wish to set aside assets for a specific use, one practical step may be to add a trust to your existing estate plans.
By placing assets in a trust, you will have more direct control over what happens to those assets during and after your lifetime. There are different types of trusts, and the right choice depends on your specific goals for the future. Your selection may also depend on how much control you want to retain over the management of the trust — a factor that will determine whether an irrevocable or revocable trust is the best addition for your plan.
How much control do you need?
While there are many different types of trusts, most will fall under two categories — revocable or irrevocable. The distinction between these two types of trusts is important when deciding how to best transfer assets to heirs and beneficiaries. As the names imply, you are able to modify terms and other details of a revocable trust after its creation. With an irrevocable trust, that is not an option unless all beneficiaries agree on the changes. Revocable trusts are popular options for Colorado adults who want to keep certain assets out of the probate process.
With an irrevocable trust, you give up ownership of assets once you transfer them into the trust. Common reasons why you may select an irrevocable trust is for the avoidance of probate and to protect privacy. Irrevocable trusts can also provide protection from creditors, and assets held in this type of trust do not affect one’s eligibility for certain types of assets.
The right selection for your estate plan
A trust could be a beneficial addition to your current estate plan. An assessment of your case can help you understand whether an irrevocable or revocable trust would be the ideal selection in your effort to create a plan that allows you to look to the future with confidence. With the right plans in place, you can have the final say over your assets and property well into the future.