Let’s demystify Oregon trusts
Oregon trusts come in many forms, from living trusts to special needs trusts. Unfortunately, trusts can seem confusing or out of reach to people. However, a trust can be the right legal instrument for your estate.
Oregon trusts: Not just for the wealthy
Most people are familiar with how wills work, and why creating one can be beneficial. However, many people aren’t sure when it comes to trusts, especially because there is a pervasive myth that trusts are only for the wealthy. Trusts are simply legal ways to manage assets, both while you are alive, and after you’ve passed. Above all, a trust can give you and yours tremendous peace of mind!
What is a trust?
Essentially, a trust is a right in property, that is held by a trustee, for the benefit of another party. The trustee holds the asset, and the trust distributes the asset to the beneficiary. There are many different types of trusts, so it’s a good idea to work with a qualified Eugene trust attorney to determine which is best for you.
Revocable or irrevocable?
One basic distinction among trusts is the designation of revocable or irrevocable.
You create a revocable trust during your lifetime. You can also alter or revoke it at any time.
An irrevocable trust cannot be revoked once the property is transferred into the trust itself. Nobody, not even the trustmaker, can change the terms. Each of these types of trusts has their place, depending on your financial goals and your estate plan.
Different types of Oregon trusts may be right for you
Revocable or irrevocable trusts are the most common kinds of trust. However, other, more specific types of trusts include:
Charitable trust
This can be a great way to give back to a cause you care about, while reducing the imposition of estate and gift taxes. Ask your estate planning attorney about charitable remainder trusts (CRTs) as well.
Totten trust
This option is a safe way to pass along financial assets to loved ones. It is a type of revocable trust that can avoid probate.
Special needs trust
If you wish to provide support for a loved one who currently receives government assistance, a special needs trust may be permitted (as long as that individual is not in control of the trust or its distribution).
Asset protection trust
This trust is designed to shield certain assets from future creditors, and is often created as irrevocable for a term, while the trustmaker is temporarily not a beneficiary.
A trust can be for anyone
These are only a few examples of trusts, which you can use to best manage your finances now and into the future. If you want to learn more about trusts, and how they play a valuable part in your estate planning, get in touch:
