When it comes to estate planning and making trust, one must be aware of all the types of trusts in Virginia. Depending on your estate and objective for estate planning, you can choose the one that meets your requirements. Different trusts have distinct features and functions; however, all trusts have some fundamental components that remain the same. All trusts have a settlor, beneficiaries, and trustee. When preparing estate planning, one should hire an estate planning attorney to better understand the role of a settlor, beneficiaries, and trustee. To find a suitable trust and estate litigation lawyer, you can search online or ask for a recommendation.
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What is the role of a trustee in estate planning?
Amongst all other components of estate planning, the role of the trustee is very crucial. The trustee is responsible for the administration of the trust. The trustee is also tasked to carry out all the trust terms.
On the other, beneficiaries are the people who get the benefits from the trust assets. In estate planning, beneficiaries could be people, animals, or charity organizations.
An estate planning attorney Virginia Beach helps clients choose the right type of trust suitable for everyone involved in it.
Now, let’s look at some of the most common types of trusts people in Virginia.
Revocable living trusts
A revocable living trust is a type of trust that can be amended or revoked anytime while the settlor is alive. A revocable living trust offers one the advantage of avoiding probate. In Virginia, when a person who is the sole owner of their assets dies without a will dies, all their assets go through the probate process. The probate process is time-consuming and very costly and must be avoided at all costs.
Besides this, a revocable living trust also makes it easier for them to manage their assets if they are incapable of administrating the estate affairs. Trust litigation lawyers advise people with young children to prepare a revocable living trust as it provides a mechanism for them to handle assets more effectively after their passing away. One can specify the age after which their children will inherit the assets.
Irrevocable trust
Irrevocable trusts are those that can’t be amended, terminated, or altered. There is no estate tax on the state level in Virginia, yet many residents subjected to the federal estate tax consider preparing irrevocable trust to minimize estate tax.
Testamentary trusts
In Virginia, most forms of trust are independent legal documents on their own. On the other hand, the testamentary trusts are established according to the last will and testament’s instructions. The person appointed as a trustee in the trust is tasked with managing and administrating the asset. The trustee is also responsible for distributing the assets amongst the beneficiaries.
Pet trusts
Many people treat their pets as their family members and even leave a considerable amount of sum for them in their will. In Virginia, there is a statute that authorizes the creation of pet trusts.
Charitable trusts
One can also choose to include charitable organizations in their estate planning.