There are various tools that are beneficial for long-term care and estate planning purposes. Each Georgia resident can customize his or her own plan to protect assets, set aside funds for nursing home or other medical care or to provide for loved ones by implementing a trust. Since there are numerous types of trusts, it’s important to understand the differences between them, especially regarding living or testamentary plans.
If a living trust is executed, it means you have set it up yourself at some point in your life. There are revocable living trusts and irrevocable living trusts, the latter of which can never be changed, hence the term. The main difference in a testamentary trust that it is not you, per se, but your will, that creates the trust. The property or funds you wish to pass on to a beneficiary passes into the trust through your will after being processed in a probate court.
A benefit of a living trust is that it you can modify it as needed during your lifetime, provided it is revocable. Many people choose living trusts to help loved ones avoid probate. If you do not wish to carry the burden of having to fund the trust, appoint a trustee and all that goes along with maintaining a living trust, you may want to consider testamentary trust options instead.
Kevin Tharpe, P.C., is committed to helping Georgia residents regarding all aspects of trusts, as well as other issues concerning long-term care or estate planning. It’s always best to confer with someone who is well-versed in tax and probate laws, as well as knowledgeable regarding potential benefits and drawbacks of various plan options. If you would like to discuss ways to safeguard your property for future generations, you can request a meeting by accessing the contact form conveniently located on our website.