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The different trusts used in estate planning

Having a plan for what happens after one’s death is important. For most people in Georgia, this involves creating a will, but there is much more to estate planning. Trusts are also very helpful, especially for those who have specific needs that a will might not address.

What is a trust?

A trust is a document that is usually created before a person’s death. The person who creates a trust is called a trustee, and he or she can then transfer assets into the trust. The beneficiary is the individual who will receive assets or benefits from the trust, usually sometime after the trustee’s death.

Revocable and irrevocable trusts

A revocable trust is also called a living trust and is useful for avoiding the probate process. Another benefit of a living trust is that it can be changed. With a revocable trust, a trustee can also:

  • transfer a property into the trust
  • remove property
  • alter, change, modify or revoke the trust

An irrevocable trust cannot be changed or revoked after its creation. Once a trustee transfers a piece of property into the trust, he or she will not be able to pull it out again. Many individuals might feel hesitant to move forward with an irrevocable trust that cannot be changed, but there are many benefits to creating one.

For some people in Georgia, a complete estate plan should include a trust. Since a trust can be either revocable or irrevocable, each individual should carefully consider his or her needs before moving forward with trusts. Many people will also find it helpful to speak with an experienced attorney.

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