There are many different trusts out there that can help you for estate planning purposes, but it is essential that you work with an estate planning lawyer to help you decide which strategy is right for you.
You may have heard of different kinds of trusts, such as a special needs trust, a grantor trust or a testamentary trust. All of these are either irrevocable or revocable. A revocable trust simply means that it can be terminated or changed at any point in time while the creator of the trust is still alive. This means that creator could terminate the trust completely, transfer different assets into the trust, remove assets already inside it, remove or add beneficiaries or change the terms of the trust regarding how assets should be distributed or managed.
Revocable trusts will automatically become irrevocable when the creator passes away. An irrevocable trust, however, does not allow changes or termination. If you create an irrevocable trust during your lifetime, any assets transferred into that trust must stay there and you cannot remove or add beneficiaries or change the terms of the trust.
Flexibility is a leading reason why many people choose to use revocable trusts, but revocable trusts do not provide the same kind of protection against creditors when compared with an irrevocable trust. To learn more about what might be most appropriate for your plans, contact an experienced and qualified estate planning lawyer today.
Our New Hampshire estate planning lawyers have helped many other residents to determine the best way to proceed with a trust. Contact us today for a personalized consultation about your needs.