When deciding on the kind of estate plan to put in motion, it is important to understand the various options for giving or bequeathing assets. One tool is the creation of a trust. However, before leaving trust management responsibilities to any one party or taking on the task of creating a number of trusts, it is vital that you understand the various types of trusts that are available to Michigan residents and decide what is best for your family or beneficiaries.
A trust is a customized and tailor-made way to distribute assets and funds to particular groups or beneficiaries. One positive aspect of creating trusts is that you have the freedom to impose stipulations or outline specific instructions and guidelines for how and when bequeathed assets or funds may be used. Some common types of trusts are irrevocable trusts, special needs trusts and minor children’s trusts.
While those are usually the most common, there are other types that are becoming more popular with those in the estate planning community. Many legal professionals are seeing a rise in pet trusts as family pets are now often considered to be part of the family. More people also want to create charitable trusts to ensure they leave behind legacies of giving. These legacies allow them to feel confident that charities that are important to them benefit from their estates. Generation-skipping trusts are also popular when someone wants to bypass leaving funds to offspring but wants to designate funds or assets for grandchildren.
The type of trust that is right for you and your family is a personal decision. However, it is also a legal matter, and having someone you can count on is vital to ensuring to your wishes are upheld in regard to your trust management. On our firm’s website you can find more information about trusts for Michigan residents, which may give you a better idea of what may work for your needs.