Planning for the future takes on many forms. Many families plan for college, vacations and even the purchase of their dream home. One other type of planning Michigan families need to consider is estate planning.
Estate planning can take on different forms. Some families find that a simple will is all that is necessary. However, other families discover that trusts are a better option given their circumstances. There are a number of different types of trusts to be considered.
A revocable trust is established during the individual's lifetime. Prior to the individual's death, he or she can make changes to or even revoke the trust. With a revocable trust, title to property is transferred to the trust with the individual creating the trust acting as trustee. One benefit of the revocable trust is that is allows the property to be transferred without going through probate. However, property placed in a revocable trust may still be subject to collections efforts by an individual's creditors.
Another form of trust is the irrevocable trust. Once an irrevocable trust is created, it cannot be changed or revoked. This stipulation applies to all parties, including the individual who created the trust.
Protecting assets and providing for loved ones is the premise behind the estate planning process. As each individual and family is considering how they wish their assets to be distributed, trusts are an option that should be looked at. Experienced legal counsel can help one analyze the situation and determine the appropriate estate planning options for each Michigan family's future.
Source: estate.findlaw.com, "Types of Trusts", Accessed on Aug. 16, 2017