Omaha Trusts Attorney
Helping You Plan for the Future
Trusts are an important estate planning tool that can help you protect your assets and provide for loved ones after you pass away. They are also useful for managing your finances and taking care of yourself when you become incapacitated. If you are considering a trust, you may have questions about how this legal arrangement works and the types of trusts you can create. Our Omaha trusts attorney can help you understand the basics of trusts and how they can benefit you.
Contact our office at (402) 810-8611 and speak with our knowledgeable team today.
What Is a Trust?
A trust is a legal agreement between a trustee and beneficiaries that allows the trustee to manage and distribute assets for the beneficiaries' benefit. The trust itself is a separate legal entity with its own rights, privileges, and liabilities, meaning it can own property and enter into contracts.
Trusts are governed by the provisions of the trust agreement and the laws of the state in which the trust is created. There are several different types of trusts, each with different benefits and purposes. Our Omaha trusts attorney can help you choose the type of trust that is best for your needs.
What Types of Trusts Are There?
The different types of trusts include:
Revocable Living Trusts: These are trusts that can be altered, changed, modified or revoked entirely by the trustmaker during their lifetime. The trustmaker transfers ownership of assets into the trust, but can still control the assets as if they were their own.
Irrevocable Trusts: Unlike revocable trusts, an irrevocable trust cannot be altered or ended without the permission of the beneficiary once it has been created. The assets in an irrevocable trust are no longer the property of the trustmaker, they belong to the trust itself. This type of trust is commonly used to reduce estate tax liability.
Testamentary Trusts: These are trusts that are created according to the instructions in a person's will, and they come into existence only after the person's death. They are typically overseen by the executor of the estate until all assets have been distributed.
Special Needs Trusts: These trusts are designed to benefit individuals who are physically or mentally disabled or chronically ill. They allow the individual to enjoy the use of property that is held in the trust, while at the same time allowing them to receive essential needs-based government benefits.
Charitable Trusts: These are set up to benefit a particular charity or the public in general. They offer significant tax benefits for the trustmaker.
Spendthrift Trusts: These protect the trust’s assets from being claimed by the beneficiary’s creditors because the beneficiary has no rights to the funds until they are distributed.
Generation-Skipping Trusts: Also known as a Dynasty Trust, these allow trustmakers to transfer a substantial amount of money tax-free to beneficiaries who are at least two generations younger than the trustmaker.
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Each type of trust has different benefits and is designed for a specific purpose. Our Omaha trusts attorney can help you determine which trust is best for your situation and explain how it can benefit you.
When Should I Create a Trust?
Trusts are a valuable estate planning tool, but they are not right for everyone. Creating a trust can be time-consuming and costly, and it does not provide any immediate benefits. However, a trust can protect your assets and provide for your loved ones after you pass away, so it is worth the effort if you want to plan for the future.
When Can I Benefit From a Trust?
There are several situations in which a trust can benefit you. If you have minor children or dependents who need financial support, a trust can help you provide for them without risking your own assets. You can also use a trust to manage your finances if you become incapacitated or if you are planning for retirement and want to protect your savings. Finally, a trust can help you plan for the future and protect your assets if you decide to sell your business, since the trust can hold the proceeds from the sale.
Our Omaha trusts attorney can help you determine if a trust is right for you and explain how it can benefit you. If you are considering a trust, we can help you understand the basics of trusts and how they can benefit you.
For inquiries about trusts, please don't hesitate to contact our office at (402) 810-8611. Our knowledgeable team is ready to assist you.