What Is A Trust?

A trust is, briefly, a legal entity created to hold assets for a specific purpose. Trusts are used in a variety of situations, but in estate planning, they are vital for asset protection. They are complicated legal issues that you will need the attention of an experienced trust attorney to resolve.

Luckily, you have us. At Olson Law, we are trust attorneys with extensive experience in Minnesota law regarding all manner of legal issues. We build estate plans for our clients in Buffalo with a singular eye on what makes the most sense for them. Sometimes, a will is enough. Sometimes, a trust is right. Sometimes, both are a piece of the overall puzzle.

The Benefits Of A Trust

The primary use of a trust is asset protection, but that doesn’t explain much about how a trust works. As we mentioned above, a trust is a legal entity, but what that means for you and your estate is that if you place assets into a trust, they are no longer part of your estate.

Moving assets out of your estate officially allows you to decrease the overall tax burden and financial size of your estate. You can more securely pass your remaining assets to your family and not worry about how taxes or probate will impact them.

Irrevocable Trusts Vs. Revocable Trusts

The two main categories of trusts include revocable and irrevocable trusts. A revocable one is one that the person creating the trust – the grantor – can dissolve if they wish. Revocable trusts can include:

• Incentive trusts: Trusts that reward people who meet certain requirements, such as reaching a certain age or performing a specific request.
• Residence trusts: These are trusts that place a person’s primary residence out of the estate while allowing them to continue living there.

Revocable trusts survive the death of the grantor by turning into irrevocable trusts.

An irrevocable trust is one that cannot be dissolved or rather cannot be dissolved without a significant amount of work. Also called a living trust, examples of irrevocable trusts include:

• Testamentary trusts
• Spendthrift trusts
• Special needs trusts

An irrevocable trust is necessary to create security for assets and beneficiaries.

We’re Trust Attorneys Here To Help

Creating a trust, funding a trust and administering a trust are all complicated issues. But you don’t have to face these difficulties alone. We will be with you with all of the experience our trust attorneys possess. Contact us today at 763-515-8013 or send an email using this form.