It is important for all people to have an estate plan so that they have their affairs in order in the event of their death or incapacitation. Part of this process can include setting up a trust. While a person who creates a trust is known as the “trustor,” the person who benefits from the trust is the “beneficiary.” There is also a third party who manages the trust, known as the “trustee.” Simply put, a trust is an arrangement that allows the trustee to take care of assets for the beneficiary. In Alabama, there are a variety of different trusts that can be created. Continue reading below to learn more and contact an experience Alabama estate planning attorney for guidance creating your plan.
Irrevocable vs. Revocable Trusts
There are several ways a trustor can create a trust for a beneficiary. The kind they choose can vary depending on the assets they want to leave behind in addition to how much control they want to have over the trust. The two main types of trusts in Alabama are:
- Revocable Trust: This may be updated or terminated at any time, as long as the trustor is of sound mind to do so.
- Irrevocable Trust: This requires the trustor to give up their rights to the trust. This means they cannot change the trust without the consent of the beneficiary.
Other Types of Trusts
Outside of the two main trusts, there are a variety of other options available for trustors to choose from when setting up their plan. Each one has a different purpose, so it is important to make sure you are setting up a plan that is right for you and what you wish to leave behind. This can be made possible by having an attorney guide you through the process. Other common trusts that people choose can include:
- Asset protection trusts
- Life insurance trusts
- Testamentary trusts
- Inter vivos trusts
- Special Needs Trusts
- Charitable remainder trusts
- Charitable leads trusts
- Supplemental needs trusts
- Generation-skipping trusts
- Qualified personal residence trusts
Contact our Firm
Stone Crosby, P.C. has proudly served clients in Alabama for over 100 years. Our firm has experience handling matters including divorce and family law, estate planning and administration, business law, employment law, class actions, consumer protection, business law, real estate law, among many others. If you require quality legal representation, contact our firm today to schedule a consultation.