Although most people create living trusts primarily to avoid the probate process that is required for wills, another important use for a living trust is to plan for the possibility that you may need someone else to manage your financial affairs if you become disabled or incapacitated. Your living trust can provide that prior to your death, your successor trustee may be given responsibility to take over your financial affairs if you are physically or mentally unable to do so.
Rhode Island Revocable Living Trust
A Revocable Trust or Living Trust, is simply a type of trust that can be changed at any time.
The down side to a revocable trust is that assets funded into the trust will still be considered your own personal assets for creditor and estate tax purposes. This means that a revocable trust offers no creditor protection if you’re sued and all assets held in the name of the trust at the time of your death will be subject to both state and federal estate taxes.
Rhode Island Irrevocable Living Trust
An irrevocable trust is simply a type of trust that can’t be changed after the agreement has been signed, or a revocable trust that by its design becomes irrevocable after the Trustmaker dies.
Irrevocable trusts can take on many forms and be used to accomplish a variety of estate planning goals:
Estate Tax Reduction
Charitable Estate Planning
Why You Should Hire A Rhode Island Attorney To Draft Your Living Trust
An experienced estate planning attorney can help you to understand the different types of trust structures and provide you with the guidance to pick the structure that is correct for you. Using an attorney to draft your living trust can make sure that assets left behind are efficiently dispersed and taxed correctly. Laws vary from state to state and it is important to consult with an attorney that has experience with living trusts in the state of Rhode Island.
To find out how we can help you plan your estate call us today at 1-401-886-LAW1 (5291) or contact us on the web.