Trusts Lawyers in Clarksville, TN, Helping Clients Protect Their Assets For Future Generations
Many individuals are already aware of the advantages of creating a will that provides guidance as to how their assets should be distributed after their death. Although a will offers excellent protection for the testator’s family and other beneficiaries, a trust goes even one step further by allowing families to avoid the costly and time-consuming probate process.
Unfortunately, most people do not know the benefits of establishing a trust. Additionally, many people mistakenly believe that only the very wealthy can establish a trust. However, a trust is relatively easy to establish and can be used for various financial goals.
Our law firm is passionately committed to helping clients prepare for their families and future generations. One of the most essential aspects of estate planning is creating a trust to ensure your assets are protected for your intended heirs and beneficiaries.
If you feel that you and your family would benefit from establishing a trust, contact Crow Estate Planning and Probate, PLC of Clarksville, TN, and ask to schedule a free initial consultation so that we may answer your questions and explore your legal options.
What Are the Benefits of Establishing a Living Trust?
Even though a will can be an essential tool used for estate planning, the assets the decedent leaves behind are subject to the probate process. Additionally, once a will has been probated, the general public can learn what types of assets beneficiaries inherited. Once the public knows the terms of the will, creditors could go after your beneficiaries for outstanding debts.
Conversely, one of the most significant advantages of establishing a living trust is that the property contained within the trust is not subject to probate, and the terms of the trust remain private. However, the assets in the trust are considered to be the property of the trust and not the owner, while the grantor, the person who established the trust, is alive.
Therefore, in Tennessee, the main objective of a trust is to avoid probate. When the grantor passes away, the assets contained within the trust are distributed per the guidelines established when the trust was created. The trustee, the individual tasked with managing the trust, will ensure that all assets and other property are distributed to the rightful heirs and beneficiaries.
If you are still trying to determine the value of establishing a trust, contact our law offices and ask to schedule a free consultation with a qualified legal team member who can answer your questions.
What Types of Trusts Are Available in Tennessee?
Although several trust options are available in Tennessee, the most commonly used trusts are revocable and irrevocable.
A revocable trust allows the grantor to amend or change the trust at their own discretion. A revocable trust helps to avoid costly probate but also permits the grantor to use the property contained within the trust should the need arise.
An irrevocable trust cannot be changed or altered after the property has been placed in them. Unlike a revocable trust whose assets can be used at the discretion of the grantor, property placed inside an irrevocable trust can never be removed. One of the main objectives of an irrevocable trust is to protect family assets from creditors or former spouses and ensure that assets remain in the family. However, just as with a revocable trust, property in an irrevocable trust is not subject to probate.
Some other common trusts in Tennessee include:
- Special needs trust: A trust that allows special needs individuals access to financial resources and helps prevent them from losing the essential government benefits they need for medical treatment and housing costs.
- Third-party special needs trust: A trust created by the family member of someone with special needs and funded with other people’s assets. A third-party special needs trust is beneficial for individuals who may have trouble managing financial resources independently.
- Charitable remainder trust: A tax-exempt trust that passes on to the charity of their choice upon the grantor’s death.
If you need help deciding which trust option is suitable, contact Crow Estate Planning and Probate, PLC of Clarksville, to learn more.
What Assets Should Be Included in a Trust?
Several types of assets can be placed in a trust that will not cause complications for you or your beneficiaries down the road. Some assets that are safe to place in trust include:
- Bank accounts: Bank accounts include checking, savings, certificates of deposit (CDs), and contents contained in safety deposit boxes.
- Investments: Investments that are safe to place in a trust include stocks, bonds, and mutual funds.
- Tangible personal property such as jewelry, furniture, or other items.
- Life insurance policies.
However, several types of assets should never be placed in a trust which, includes:
- Physical cash cannot be placed into a trust but should instead be placed in a bank account that is included in the trust.
- Vehicles: Often, motor vehicles are sold or transferred by their owners, and if placed in a trust, it could be challenging to make changes to ownership.
- Retirement accounts include IRAs and 401(k), and 403(b) accounts. When retirement assets are transferred to a trust, it could cause the owner to have to pay a high amount of income taxes and lessen the value of the accounts.
A knowledgeable trust lawyer, like those of Crow Estate Planning and Probate, PLC, can help you understand which assets should be placed in a trust and what you should leave out.
What Makes Your Law Firm the Best Choice to Help Me Establish a Trust?
Unlike other law firms that handle a wide variety of legal needs for their clients, Crow Estate Planning and Probate, PLC focuses solely on helping individuals with their estate planning needs.
Our law firm recognizes that many people need to be made aware of the multitude of benefits that a living trust can offer. However, our skilled legal team has extensive experience creating trusts for our clients and can offer sound legal advice about the best option for your specific needs.
We understand that you want to ensure your family has the resources they need to live comfortably after you pass away. However, the probate legal process is often costly and time-consuming and can quickly create a financial crisis for your family as they try to obtain their inheritance.
However, with the help of a skilled trust attorney, you can help your family avoid the probate process and be assured they will have the resources and assets they need.
If you would like to learn how you and your family could benefit from establishing a trust and the rules and laws surrounding them, contact Crow Estate Planning and Probate, PLC of Clarksville, TN, at 931-272-3746. A qualified legal team member will gladly sit down and evaluate your situation and determine what options would be the most beneficial.