A trust is a great instrument to help keep your Virginia estate strong and protected. In a trust, you have a legal agreement that keeps your assets from creditors, the IRS and false heirs. However, giving your possessions to the beneficiaries you choose is more complicated than it might seem. There are ways to contest your wishes and even steal your assets if you’re without a trust.
What is a revocable trust?
Each trust is a financial arrangement between the trust’s creator and their trustee. The trustee is appointed by the creator, who is also called the grantor. The grantor must decide on who will receive the trust after they die. In estate planning, anyone who inherits a trust’s assets is a beneficiary. The trustee then acts as a mediator for the beneficiary. The revocable trust holds this same structure, but unlike irrevocable trusts, it can be rewritten or terminated.
Estate owners often choose revocable trusts due to their flexibility. If you have investment assets, for example, a revocable trust allows you to withdraw your gains. In an irrevocable trust, you can’t access the contents or change your set conditions later on. The flexibility of a revocable trust, however, ensures that your financial strategy can adapt over time. Your circumstances and the structure of your estate dictate which type of trust is ideal for you.
Estate planning in Virginia
Estate planning is rewarding because it is how you establish and pass on your wealth. In court, your living or testamentary will can be contested and even made void. You won’t encounter this with a trust to protect your assets.