Once you become unable to manage your accounts through death or injury and your trust becomes active, you want to be sure that everything goes according to your plans. While this may sometimes be the case, there are situations when mistakes were made in the estate planning process. These can make it possible for creditors to access your assets and your intended ownership to be denied. We at Kroener Law Firm work hard to keep this from happening by ensuring that the trust you choose is the right one for you.
U.S. News states that one option for a trust is an irrevocable trust. The set-up and administration of this type of trust is more difficult, but the guidelines within are well-protected. This is a common choice for those with disabled dependents or other special circumstances that required certain plans to be guaranteed after they pass away. These trusts also typically have tax advantages if you have a higher income.
Revocable trusts, on the other hand, are less complex and often do not require your assets to go through probate after your death. This means that your trustee will immediately become manager of your estate. This type of trust can also be useful if you do not die, but are sick or injured and become incapacitated. Revocable trusts become irrevocable upon your death.
If any issues with creditors arise, a revocable trust will be unable to protect your assets. For more information on the benefits of each kind of trust, visit our web page.