On February 12, 2016

What to consider when choosing trusts in estate planning

What to consider when choosing trusts in estate planning

Selecting a trust can be an important part of the estate planning process. Given that there are a number of different trusts to choose from, however, knowing which type of trust is the best choice can be confusing, especially for those who have never been involved in estate planning before.

To help guide you in this process, below are some specific issues to consider as you think about the right type(s) of trust(s) to include in your estate plan. While the following provides some generally helpful information, don’t hesitate to contact a Denver estate attorney at JR Phillips & Associates, PC when you are ready for specific estate planning advice pertaining to your situation.

Questions to Answer When Choosing a Trust

Answering the following questions can help narrow down your best trust options:

  • What is my main goal of developing the trust? – In other words, do you want to make sure certain loved ones have financial support in the future? Do you want to reduce your loved one’s probate obligations later? Or do you have some other goal(s) in devising a trust? If you have multiple goals for your trust(s), it can be helpful to prioritize these goals to determine whether:
    • Any of your goals may be conflicting; and/or
    • You may need to develop multiple trusts to cover your various needs and goals.
  • Do I want to maintain control over the trust? – In other words, do you want the trust to go into effect during your lifetime? And do you want the authority to be able to alter the terms of the trust?  If so, developing a revocable living trust will likely be necessary.
  • Who do I want as beneficiaries of the trust? – Will the chosen beneficiaries be minors, individuals with special needs, charities, and/or other entities? Knowing who your beneficiaries are can help narrow down your options for trusts, as certain types of trusts are specifically set up to benefit certain types of beneficiaries (e.g., special needs trusts for beneficiaries with special needs).
  • How do I want to fund the trust? – Will you be funding the trust with some “real” asset (like cash or property)? Or will the trust be funded by the proceeds of an insurance policy (or something else)? Again, certain trusts better suited for certain types of assets, and considering this upfront can help you make the right trust selection.

Contact a Denver Estate Attorney at JR Phillips & Associates, PC

For experienced help developing a trust or an entire estate plan, you can turn to the Denver estate attorney at JR Phillips & Associates, PC. We provide a thoughtful, comprehensive approach to our clients’ estate planning, elder law and other legal needs, and we take pride in helping each of our clients and their families find the best solutions for them.

Let’s discuss your estate planning options during an initial consultation. To schedule this meeting, call us at (303) 741-2400 or email us using the contact form at the top of this page.

Categories: Estate Planning, Trust Administration, Trusts