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Bloomington Trusts Lawyer
When it comes to legacies and how assets are distributed following death, everyone’s situation is unique. Establishing a trust can be a great way to accommodate various needs of beneficiaries, while also providing valuable benefits to clients during their lifetime.
At Sandahl & Damhof, we have Bloomington trusts lawyers with the knowledge and experience to advise whether trusts are suitable for a client’s circumstances, and how they should be set up. Our services area extends beyond Bloomington and throughout the Twin Cities including Minneapolis, Edina, and Richfield.
Call the office at (612) 421-0991 or reach out here online today to set up a free consultation.
What is A Trust?
A trust is a legal arrangement where you, the grantor, transfer assets like property, investments, or funds to a trustee. The trustee, either a person or institution you select, manages these assets based on the terms outlined in your trust. Beneficiaries receive the benefits either during your lifetime or after your passing, depending on the trust type.
The Importance of Trusts In Estate Planning
Trusts are incredibly versatile. Here are some advantages of utilizing a trust in your estate plan.
Flexibility
Trusts provide a powerful way to plan for the future. Unlike a will, which takes effect only after you pass away, certain types of trusts can manage and protect your assets while you’re still alive. This can be especially helpful if you become incapacitated and are unable to manage your financial affairs. The trustee can step in to handle your finances on your behalf, ensuring that your bills are paid and your assets are managed according to your wishes.
Additionally, you may create a trust that provides for the education of a child or grandchild, or one that ensures funds are available for a loved one with special needs. You can even structure a trust to make regular charitable donations in your name.
Ensure Privacy
Trusts also offer privacy. Wills must go through probate, which is a public process, meaning the details of your estate become a matter of public record. Trusts, on the other hand, do not require probate, so the terms of your estate and the distribution of your assets remain private.
Reduce Estate Taxes
In addition, trusts can help reduce the amount of estate taxes owed, protect assets from creditors, and prevent family disputes over inheritance. If you own a business, a trust can ensure its smooth transition to the next generation, without the need for lengthy court proceedings or public scrutiny.
Different Types of Trusts
A trust can either be revocable or irrevocable, and the differences between them are important.
Revocable Trusts
A revocable trust, also known as a living trust, allows you to maintain control over your assets during your lifetime. You can modify or revoke the trust at any time. Upon your death, the assets within the trust pass directly to your beneficiaries, bypassing probate court. A revocable trust allows for changes to be made by the grantor (the person who sets up and funds the trust). This includes being able to alter the beneficiaries, as well as adjusting the terms and conditions of the trust. This can speed up the distribution process and maintain the privacy of your estate, as the trust does not become a public record.
Irrevocable Trusts
On the other hand, an irrevocable trust has fixed terms, preventing modifications from occurring. Once created, these documents cannot be changed or revoked without the consent of the beneficiaries. \These trusts are often used for long-term financial planning, ensuring that assets are preserved for future generations or designated beneficiaries.
While this may seem limiting, irrevocable trusts offer significant benefits, such as reducing estate taxes and protecting assets from creditors. Age is another notable consideration when it comes to deciding between a revocable and irrevocable trust.
Consult Our Experienced Trust Lawyers in Bloomington
Furthermore, an initial decision to set up a trust as revocable can be changed at a later date. The timing of moving from revocable to irrevocable should not be taken lightly–this decision can have financial implications that affect not only the grantor, but also their beneficiaries. It’s essential to consult with an experienced Bloomington trusts attorney who will remain in continual contact with clients, and update the terms of their trust, if appropriate.
Helping Clients Understand All Their Trust Options
Trusts offer many more advantages, from helping parents plan for children with special needs, to managing an inheritance over time, rather than distributing it in one lump sum.
Our proven trusts lawyers in Bloomington take the time to really listen to clients—to understand their financial situation, and their hopes for how their financial legacy will be used. Then we go to work at crafting a plan that will meet their particular needs.
Call Sandahl & Damhof today at (612) 421-0991 or contact us online to arrange for a free consultation.
Why Our Clients Choose Us
Our mission is to become an essential, trusted partner in our clients’ lives. We achieve this by leveraging our experience, expertise, and tireless work ethic.
- Collaborative Approach We aim to be your trusted partner. We work together with our clients to find the best solution for them and their families.
- Individualized Guidance Our attorneys get to know you and your family to understand what options are right for you. Thus, offering effective and proper estate planning solutions.
- Lasting Relationships Estate planning needs change throughout every stage of your life and our team will be with you every step of the way.
Hear what it’s like working with our firm from our clients themselves!