Many people, perhaps including some in Georgia, have an aversion to thinking about their own mortality. Others understand the importance of pondering such things and to place certain things in writing regarding asset protection, wills and other estate planning matters. Various documents may be part of an estate plan, including a trust or durable power of attorney.
Signing a trust is a serious matter, and it’s critical that the person doing it clearly understands all it entails. For instance, one must determine whether to make a trust revocable or irrevocable. Some people use trusts as substitutes for a will.
A major difference between an irrevocable and revocable trust is that the latter may be changed at any time while an estate owner is still living. The former, on the other hand, is meant to be a permanent document, unable to be changed. One of the benefits of an irrevocable trust is that it often protects people from taking big tax hits. Revocable trusts convert to irrevocable trusts as soon as the estate owner dies.
If a Georgia resident wants to transfer money to a grandchild after he or she dies, a trust may serve the purpose. By placing monies in trust and appointing the grandchild as legal trustee, he or she will gain control upon the grandparent’s death. Because legal terminology can be confusing to understand, talking with someone well versed in estate planning, elder laws and long-term care planning can be the first step toward creating a solid plan.