One of many Indiana residents’ primary goals is establishing financial security for themselves and their families. In many instances, this takes the form of savings accounts and corporate investments. Many individuals choose to purchase stocks and bonds or explore other investment opportunities. For several people, the route to financial security lay in establishing a trust.

A trust is a valuable tool for protecting not only the money you’ve earned but also other assets and property you’ve accumulated throughout your life. A trust also eases the transition of ownership from you to the intended recipients and helps you avoid potentially complex legal hurdles.

Trusts are complex legal entities to establish and require a precise level of care and legal expertise to ensure they will serve their intended function. This is why if you or a loved one needs to establish a trust in Morgan County, Indiana, consult with one of the trust and financial attorneys at AJM Legal, LLC. One of our attorneys can explain the trust process, determine whether it’s right for you, and decide what kind of trust to form for your and your loved ones’ protection.

When you establish a trust, it becomes a legal entity. You will assign someone to manage this entity for you, or you can choose to be the trustee of your own trust. This person is called a trustee, and, true to the name, should be someone you trust with access to your finances and assets. Once the trust is established,  you will transfer ownership of money, property, assets, and more into the trust. When this happens, you are no longer considered the legal owner of this money or assets. It is now legally the property of the trust. The trustee will manage the trust according to the instructions you assigned to them.

Trusts have multiple benefits. For example, suppose you want a loved one to easily inherit a large sum of money and a house. You could transfer this money and ownership of the house into the trust. Under normal circumstances, when someone dies, their estate may enter probate. Probate is a potentially lengthy process during which the state validates a person’s will and ensures their property is distributed accordingly. Depending on the circumstances, family members, business associates, and loved ones may attempt to involve themselves in probate. This can lead to severe delays.

Challenges to your estate may also result in further delays or a judge distributing property against your wishes. A trust can avoid this situation. Because the assets in a trust no longer legally belong to you, they may avoid probate entirely. When the guarantor of a trust dies, the trustee can review their instructions and then distribute the assets accordingly. 

There are multiple types of trusts available. What type of trust works best for you will depend on your precise circumstances.

Some types of trusts include, but are not necessarily limited to:

• Revocable Living Trusts
• Irrevocable Trusts
• Charitable Trusts

The most basic types of trusts are revocable and irrevocable. An irrevocable trust is one of the most common and secure. Once you have established an irrevocable trust, you cannot modify or change it. While some people may be nervous about transferring ownership of assets into an irrevocable trust, it offers a high level of financial protection. For example, assets in an irrevocable trust may be protected from creditors and the IRS.

A revocable trust allows you to make changes or modify the trust at any time. While this provides an extra sense of security to the guarantor, revocable trusts do not have the same level of tax protection or other benefits.

Other types of trusts are “purpose-built” or “purpose-driven.” For example, an asset protection trust is explicitly designed to shield money, property, and more from creditors or the government. A marital trust is designed to ensure a surviving spouse can easily inherit their deceased partner’s assets. Charitable trusts allow you to finance charities and foundations in a way that may be beneficial for tax purposes. An experienced trust attorney can review your finances and determine what trusts may be best for you.

Trusts are one of the most valuable tools a person can use to protect their finances and ensure the safety, comfort, and security of their loved ones. Despite this, many people are unaware of what trusts are, how they work, or how they can establish one. The truth is that most people can benefit from a trust, even if it’s only providing them peace of mind. Depending on your circumstances, a trust could be what secures your family’s future for years to come. If you or a loved one thinks a trust may be right for you, don’t hesitate to call AJM Legal, LLC today.

The skilled and experienced trust attorneys at AJM Legal, LLC, pride themselves on helping all of their clients secure their financial futures. We consider it a solemn duty to our clients to ensure they and their families are safe, happy, and financially settled. Trusts are a way to ensure this stability. If you or a loved one is considering establishing a trust in Indiana, don’t hesitate. Call AJM Legal LLC today at (765) 342-1962 to schedule your free consultation.