Trust and Wills
A trust is a legal document that instructs how your assets will be managed during your life and distributed after your death. Trusts keep your affairs private and out of court.
There are several types of trusts. The most common trust is a revocable living trust. A revocable living trust holds assets and gives the “trustee’’ the power to administer and distribute trust assets. The person creating the trust, or “trustor”, is typically the initial trustee. A revocable living trust can be changed or revoked during the trustor’s life.
After death, a successor trustee assumes the responsibility of carrying out the trust instructions, for example distributing trust property to the person the trust indicates is to receive said property (also known as the “beneficiary”). An irrevocable trust is a different type of trust. Assets held in an irrevocable trust cannot be removed and are normally administered for the benefit of a beneficiary. Charitable or Special Needs trusts are types of irrevocable trusts.
A will is a legal document that sets forth who will inherit your property after death. Parents with minor children can name the person they wish to become their children’s guardians in a will.
Although trusts and wills are both legal documents used to determine how your assets will be distributed when you pass, wills are carried out through the court system, whereas trusts allow a trustee to handle the distribution without court involvement.
These matters can be complicated to understand. Let Cotto Law Firm explain how these documents work in detail and determine how to best serve your wishes.
