Estate Planning – Rules and Trustees

If you’ve been paying attention to the major differences between wills and trusts while attempting to put certain assets into a trust (inter vivos), then you’ve been paying attention to the essential differences between wills and trusts. A trust established during your lifetime is significantly more solid than a will in terms of its potential to resist challenges over the distribution of your assets during estate planning. Making a trust is a risky move since it reveals, to some extent, what you want to do with your assets while you’re still alive. This is what protects it from attacks on your capacity, because it’s rare that one of your family will tell you you’re insane or frail and overly influenced by another relative to your face, and this makes the trust, in some situations, a lot safer bet than a will. Feel free to visit their website at The Law Offices of Thomas J. Lavin-Personal Injury Attorney for more details.

However, the trust may encourage negative thoughts about a relative’s exclusion, and those feelings will be revealed to the person who creates the trust while they are still living. This is the benefit of having a strong will: you’ll never know if people don’t like it. When people who don’t like what they’ve done question the will and those who do try to defend it, the will creator is long gone. It should be highlighted, however, that smart drafting should be able to eliminate the need for either a contest or a defence. That is why, rather than using a form, you should use a skilled estate planning attorney to draught your will. The lawyer who draughts your will frequently defends its contents, or their interpretation of your wishes. The trust is distinct because it will be handled by someone (the trustee) for the benefit of people who will profit from it (the beneficiaries).

One of the most difficult aspects of creating a trust is determining what rights the trustee has and does not have in relation to the assets you’ve placed in trust. If the settlor (the trust’s originator) does not stipulate otherwise, a trustee is presumed to have a duty to benefit the trust, and many states have regulations governing what a trustee can and cannot do. However, you don’t want the state to decide the financial fate of your trust any more than you want the state to decide who gets your assets. Your wills and trusts lawyer will be able to provide you with a list of traditional trustee powers in your state and explain what they entail.

Many of the powers relate to the assets that the trustee can invest in on behalf of the trust. The trustee, for example, may be forbidden from purchasing general securities for the trust because they are deemed too risky. However, if you’ve chosen your trustworthy stock broker as your trustee and she’s consented, this could be the exact constraint you’re looking for. Consult with your attorney about the type of trust you want to set up and the laws in your state.