Protecting your finances and safeguarding your loved ones are important steps to take in your lifetime. Individuals in Michigan could accomplish this through estate planning and by creating a trust that specifies their wishes. While the task might seem daunting and something that can be pushed until off later in life, it is certainly a step that should be taken as soon as possible.
No one wants to place a loved one in a vulnerable situation, especially when it comes to them experiencing estate taxes, income taxes, and probate fees after your death. At the Prince Law Firm, our experienced lawyers understand that many individuals are put off by the complexities of trust. However, we are dedicated to explaining the benefits of these instruments, helping individuals in the Detroit area protect the future of their heirs and beneficiaries.
When it comes to drafting trust documents, it is important to be fully aware of your options. The most common trust is the AB living trust. This is also known as the marital trust and the credit shelter trust. This type of trust is designed for married couples to take a full advantage of the federal estate tax exemption. It also allows for a surviving spouse to use the assets and pass them smoothly to the heirs of the couple.
It should be noted, however, that because of the increase in federal tax exemptions, an AB trust is not always the best options when it comes to tax planning. Our skilled legal team can help you assess your options when it comes to marital trusts, find a way for you to meet your overall goals.
Whether you seek to draft a revocable or irrevocable trust, it is important to understand how these documents are used, as well as the advantages and disadvantages of each type of trust. Depending on your goals, a trust can be designed to assist with tax planning, provide for the care of a child with special needs, enhance the quality of life if nursing home care is needed, supervise funds on behalf of minor children and young adults, protect inheritances, and provide charitable contributions.
To learn more, check out our law firm’s trusts website. Whether you are curious about the benefits of trusts, seek to draft one, or intend to modify a current trust, it is important to understand your rights and options. This not only helps ease the drafting process but ensures your rights and interests are upheld.