Considering a Living Trust in Michigan? We Can Help.
One aspect of estate planning is protecting your assets and avoiding probate by establishing a trust. A living trust can help protect the assets you wish to leave behind to family members after your death.
What Is a Revocable Living Trust?
Without proper planning, at your death, your assets normally pass into probate. Probate is the process by which the court settles your estate. You can avoid probate by protecting your assets with a trust. In Michigan, we have two main types of trust:
- Revocable (living) trust. This type of trust allows you to move trust assets in and out of the trust during your lifetime and change instructions for the trust agent to follow at your passing or incapacitation.
- Irrevocable trust. This type of trust is a true asset protection trust, safeguarding assets from creditors during your lifetime. However, you will not be able to access the assets once you create and fund an irrevocable trust.
A revocable living trust will become irrevocable after your death, protecting the trust assets and avoiding probate so your family can receive their rightful inheritance expediently.
How to Establish a Living Trust in Michigan
To establish a living trust, you must draft a legal document that names the trustee (usually yourself) and beneficiaries. You will name a successor trustee to manage the trust upon your death or incapacitation.
You will also need to fund the trust by adding trust assets or directing assets to the trust upon your death, and properly sign the trust so the trust agreement is legal and binding. Because of the complexity of trust documents and restrictions, you should ask a trust attorney with our office to help you create and fund your living trust.
Benefits of Creating a Living Trust
While it is not a true asset protection trust while you’re alive, there are many benefits to creating a revocable living trust. Some benefits include:
- Ability to alter the trust during your lifetime
- Conversion to an irrevocable trust after death or incapacity
- Avoidance of probate for trust assets
- Protection of family heirlooms, real estate, investments, furniture, jewelry, and more from creditors after your death
- Privacy for assets contained in the trust
- Affordability and expediency for your heirs compared to going through probate
Contact Us at the Bassett Murray Law Group, PLLC, to Create a Living Trust
At the Bassett Murray Law Group, PLLC, we have helped Ann Arbor residents prepare for life’s changes for over 25 years. Our legal team and staff work together to provide clients with compassion, dedication, and experience. Contact us to schedule an initial consultation to discuss setting up a living trust.
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