You may not always feel a sense of urgency to go out and do an estate plan. Once you have a child, however, your priorities shift, and thinking ahead to the unthinkable may come to mind.
When formulating an estate plan strategy, several options for setting aside money for your children exist. A trust is a popular way to allocate money to specific people, and in the case of minor children, that money can stay in an appointed guardian’s care until that child reaches a certain age. What types of trusts exist and what do they mean?
If you want to ensure your wishes get fulfilled after your death, you may want to ask your estate planning professional about creating an irrevocable trust. In an irrevocable trust, once you deposit assets and property, you cannot take them. It is unbreakable, even for the person appointed to administer it. Pros and cons exist for this type of trust.
At the opposite end of the spectrum is the revocable trust. This type of trust allows the transfer of property and assets in and out throughout your lifetime. Another name for this is a living trust. Since it is a more fluid piece, people may feel it is less secure. However, debtors may seize the assets deposited in a revocable trust to settle debts.
If you never get a chance to set up a trust but your wishes about how you wanted your assets and property passed to your children indicate the need for a trust, a court may grant a constructive trust. Because this is something done after death, it is riskier. A judge may create it from statements you made during your lifetime. This type of trust takes ownership in property and survivorship into account before disbursing anything.
Taking care of your growing family is a top priority, and if you live in or near Gold River, California, you want to ensure the proper execution of your wishes. A trust is just one failsafe in your estate plan to get your assets and property where you want them to go after your death.