Trusts are nothing more than a legal relationship and contract agreement, where the owner of some type of assets (the Donor, Grantor or Settlor), transfers possession of those assets in a written agreement (the Trust) to someone who agrees to be the holder of the assets (Trustee), and who also agrees to make the distributions of the assets according to the Trust instructions set forth by the owner (Donor, Grantor or Settlor), to the recipients of the assets (Beneficiaries).
A Trust is written by an Attorney who concentrates their practice on Trusts & Estates. After meeting with a client to discuss the client’s wishes regarding to whom the assets are to be distributed (individuals, charities, etc.), the Attorney then works with the client to develop the methodology by which the transfer of ownership will occur.
Trusts can be as simple as a Family Trust, which sets out to whom the family’s assets are to be given, as well as other details, such as: when to make the transfer, how to make it, and other detailed directions to the Trustee making the transfers. Or, they can be complex credit shelter protection Trusts that require very detailed assessments of certain identified assets to protect them from state and/or federal estate taxes upon one’s passing. These are usually prepared along with a special type of Will (Pour-Over Will) that works in conjunction with the Trust. Trusts also provide a great deal of privacy and confidentiality that a simple Will cannot.
So, now you know something about Estate Planning, Wills and Trusts. If you think that you and your family would benefit from having a Will and related Trust, call an experienced Trust & Estate Attorney such as: Brian L. Champion, Esq., at Libby O’Brien Kingsley & Champion LLC (207-985-1815). There is no charge for the initial call to see if you should have further discussions to develop a plan drawn up just for you and your family.
