Death is a frightening experience for many. But what’s even more frightening is not knowing what will happen to your loved ones’ futures once you are gone. While many people choose to avoid estate planning, the sooner you prepare for the future, the less frightening it will be.
The best way to provide for your family’s future is creating a trust. But how do you get started?
You pick up the phone and you contact the PA trust attorneys at Fellerman & Ciarimboli. For decades, our estate planning lawyers have been helping clients in Philadelphia, Scranton, and Wilkes-Barre with trust creation. We understand how difficult this situation can be. That’s why we will take the time to walk you through the process and make sure your family’s future is protected if something should happen to you.
What is a Trust?
In estate law, a trust is used to distribute the property or finances to a selected individual after a person dies. The purpose of a trust is to make sure the selected person is cared for after someone passes away. For example, take the case of chef Anthony Bourdain. He created a will in 2016 which made his wife at the time the executor. Bourdain then created a trust outside of the will for his daughter which had the bulk of his estate. You can learn more about the case here.
A trust has a set of legal guidelines that must be followed. These rules determine the specifics of how the property is distributed and when. There is usually a guardian appointed by the deceased to make sure these rules are carried out as specified. Violating these rules is considered a breach of fiduciary duty and the guardian can be held accountable in a court of law.
The Types of Trusts
When creating a trust, it’s important to know there are four different types of trusts:
Revocable Trusts – These types of trusts are created during the lifetime of the grantor through a transfer of property to the trustee. The creator of the living trusts keeps the power to either change or revoke the trust.
Irrevocable Trusts – Once the grantor passes away, that trust becomes irrevocable, meaning it cannot be changed. The trustee needs to follow the rules that the grantor had established when distributing property or payments.