People in Connecticut may find that using a trust to hold and manage assets for their heirs or beneficiaries can be advantageous in a number of ways. When deciding whether to use a trust as part of an estate plan, there are several factors to consider.
For individuals who are concerned about what will happen to their assets should they become incapacitated, a revocable living trust be may be an alluring option. In the trust agreement, the estate holder can designate a disability trustee. A trust that has been carefully considered and drafted can be used to manage the care of the beneficiary who has been disabled.
A living trust that has a corporate trustee can provide professional investment management for assets placed in the trust. Those assets could then grow and be used to support the beneficiaries. However, the trust document should clearly detail the manner in which assets are to be disbursed to loved ones. Instructions can also be included to postpone disbursements.
One particular feature of a trust is that it can be useful in avoiding probate — the legal procedure in which an estate is administered. If the estate holder uses a will to transfer assets just in their name, the will must go through probate. To avoid this, a revocable living trust can be used to handle the transfer of the assets.
An attorney may advise clients about the appropriate estate planning tools needed to ensure that assets are handled properly. For example, legal counsel could help draft the provisions of trusts or wills.
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