Trusts Attorney in Fayetteville and Fort Smith, Arkansas
A trust is an essential estate planning tool for many different situations, but many people don’t entirely understand the different types of trusts and why it is important to have one. According to AARP, 58 percent of people between the ages of 53 and 71 have estate planning documents set up, but what about the others? Setting up a trust is an entire process, and having the right attorney on your side can make it a lot easier.
At the Bond Law Office, we understand how difficult it can be to create a trust, which is why we guide our clients in Fayetteville, Arkansas, every step of the way. We also support our clients in The Arkansas River Valley, Harrison, Eureka Springs, Clarksville, Waldron, Mena, and Van Buren with their estate planning needs.
Overview of Trusts
A trust is a legal entity that establishes specific rights. A trust defines a trustee, who then has the right to manage the assets on behalf of the person setting up the trust. The benefits of a trust vary, and there are also different trusts that you can set up depending on what you need them for.
Various different assets can be transferred into a trust. Real estate investments, property, homes, or land, can all be transferred into a trust. Accounts held at banks and credit unions may also be transferred into a trust, as well as stocks, bonds, and money market accounts. Other assets that can be transferred include life insurance policies, business interests, and collectibles or antiques.
Type of Trusts
Typically, revocable trusts are living trusts that are managed during your lifetime and can be changed whenever you want. One of the reasons why you may want to change a trust is if you went through a divorce or have new assets to add to the trust.
Irrevocable trusts cannot be changed unless there is permission from the grantor's beneficiaries or by going to court. An irrevocable trust is meant to protect assets by minimizing tax liability.
Process of Creating a Trust
The process of creating a trust can be intimidating, but when you work with a trusted attorney, you can count on them to help guide you through it all.
The first step is to decide exactly what assets you want to place in the trust. Whether you want that to be financial assets or real estate assets, we will want to make this decision first. That way we can decide whether we will set up an irrevocable or revocable trust.
Next, our team can help you decide who you will include as the beneficiary.
We can also help get you started with the legal documents you need for a trust in Fayetteville, Arkansas.
Why Having A Trust Is Important
A trust is important for many different reasons. One of those is that it allows for your assets to bypass probate. In other words, rather than the assets having to go through a legal process after you pass away, they will go directly to your beneficiary. On top of that, a trust allows your assets to be kept in a trust until a certain date. This is especially useful if you want to make a beneficiary a person who is underage, but only want them to acquire the assets after they reach a certain age. Trusts also offer protection in the event that you reach mental incapacitation. The trust can be set up when you are healthy, and you no longer have to worry about it after it is made.
You may be wondering how a trust is different than a will. Well, one of the main differences is the benefit that a trust is private, unlike a will, which is a public record.
Choosing a Trustee and Beneficiaries
It is important that you choose a trustee and beneficiary that you trust to oversee your assets. While many people consider family members, you can also choose attorneys, such as an estate planning attorney, if you want your assets to include real estate properties.
Consider finding someone who is responsible to oversee your assets. You may be thinking about leaving specific instructions, and the trustee should be able to follow them. Additionally, you may need someone who has experience dealing with trusts. That helps ensure that your assets are well taken care of and that instructions are followed.
Trusts Attorney Serving Fayetteville and Fort Smith, Arkansas
At the Bond Law Office, we have experienced staff that you can count on to handle your estate planning needs in Fayetteville, Arkansas, and Fort Smith, Arkansas. Contact our firm today for help navigating this process with a team of experts who only have your best intentions at heart.