For many Virginians, a will and advance directives are sufficient to cover their estate planning needs. However, when substantial assets or unique circumstances are involved, it may be wise to include a trust in your plan. A trust can provide numerous advantages during your lifetime and after death. According to financial advisers at U.S. Bank, the benefits of preparing a trust include greater control over your assets, avoiding the probate process, increased flexibility, and more.

A Virginia trusts lawyer at MichieHamlett Law Firm can help you leverage these benefits and align them with your estate planning goals. Our team will explain the different types of trusts, advise on which are most suitable for your needs, and assist with legally establishing the structure. To learn more, contact our talented estate planning attorneys today to schedule a consultation.

Basic Legal Concepts Governing Trusts

In short, a trust is a legal entity created to hold assets and manage them according to the terms of the trust document. While the details vary according to the type of trust and language you include in it, some of the key components include:

  • You, as grantor, create the trust by executing the proper documents and “funding” the entity with chosen assets, i.e., titling your property in the name of the trust.
  • You name a trustee to manage the assets; in some situations, you will name yourself as trustee.
  • You designate individuals as beneficiaries to receive distributions of principal and/or income according to your wishes.
  • The trustee is bound to manage trust assets as dictated by the trust paperwork, for the benefit of the designated beneficiaries.

Common Trusts and Their Role in Virginia Estate Planning

Most trusts fall into one of two categories: Revocable or irrevocable, which refers to whether the grantor can make changes after establishing the trust. Our lawyers at the MichieHamlett Law Firm can explain the function of additional types of trusts you might want to consider within these two categories, such as:

  • A living trust that holds your assets during your lifetime, which delivers benefits since your trustee can step into your shoes if you become incapacitated;
  • Testamentary trusts that are created by your will and take effect at death;
  • Spendthrift trusts that include restrictions on how beneficiaries can receive distributions;
  • Special needs trusts, which can provide distributions to beneficiaries with disability without affecting their eligibility for government benefits; and,
  • Charitable remainder trusts in which you maintain until your passing, at which point the assets are distributed to a qualifying charity.

Set Up a Consultation with a Virginia Trusts Attorney Today

This overview may help you understand the fundamental concepts behind trusts, but there are many additional details to consider. For more information, contact the MichieHamlett Law Firm today to schedule a consultation with a Virginia trusts lawyer. Once we review your circumstances and discuss your goals, we can help design an estate plan tailored to achieve them.