Important Types of Trusts and How to Fund Them

February 4, 2022
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A well-drafted Trust by an experienced Elder Care Lawyer can ensure your loved ones and property will be protected.

Learn all about Trusts and how to securely fund them to accommodate your needs and achieve your goals.

Common Types of Trusts

A Trust is a document that creates a legal entity. There are several types of trusts to choose from. Yet, we’ve highlighted a few Trusts that can help you navigate your way through the planning process. 

Revocable Trusts

A Revocable Trust is a Trust that can be changed or revoked by the creator for any reason, at any time, as long as the Grantor is still living and deemed mentally competent.

For example, The Revocable Living Trust is a planning document that has grown in importance over the last number of years. It is a private written agreement in an Estate Plan that allows a person, while keeping full control, to coordinate their assets and avoid the lengthy, costly, public Probate process.  The Revocable Trust does not protect assets.

Learn more about Estate Planning and avoiding Probate. 

Irrevocable Trusts

An Irrevocable Trust is a flexible tool that can shelter your assets from certain risks.. 

For example, an Irrevocable Asset Protection Trust protects assets such as the home and allows the family to prepare for future long term care. The purpose of this trust is to retain income for you or your family while protecting the assets for your spouse, children or other beneficiaries should Medicaid be required to pay for long-term health care in the future.

Funding a Trust

It is important to plan which assets you will be funding your trusts with. Moreover, remember that an asset not transferred to the trust is not owned by the trust and can be subject to Probate and your creditors..

Top Assets to Fund Your Trust

  • Real Estate
  • Investment Accounts
  • Bank Accounts
  • Life insurance beneficiaries 

Questions about Trusts, Estate Planning, Probate and more? Visit Ask Brian to share your thoughts!

Learn which plan is best for you and your loved ones. Contact our legal and care team at Tully Law Group at 631-424-2800 to set up a free consultation.

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