Creating a Trust
Elder Lawyers for Creating a Trust | Crumbley-Blackwell & Associates, P.C.
The attorneys from our elder law team help those in Madison, Limestone, Jackson, and surrounding North Alabama counties wishing to develop a trust. Trusts help protect assets from life-changing events such as divorce, bankruptcy, and others.
What is a Living Trust?
A living trust is sometimes referred to as a revocable trust or family trust. A living trust is an arrangement under which the person setting up the trust (“grantor”), appoints a manager (“trustee”), to hold legal title to property for another person (“beneficiary”). The grantor can also be the trustee and beneficiary of his or her own living trust, maintaining full control over all property held in the trust. The living trust is used to avoid probate and guardianship issues. Probate is the court-supervised process of paying estate debts and distributing estate property to inheriting individuals. Property transferred into a living trust before death is not required to go through probate. The process of administering a living trust at death may take only a few weeks, whereas the probate process could take several months.
Setting Up a Trust
Living trusts are relatively simple to set-up and do not complicate property ownership in Alabama, a common misconception. For income tax purposes, a living trust is classified as a “grantor trust,” meaning that the grantor (the one who sets up the trust) will continue to be responsible for paying the taxes associated with trust income. In other words, when someone sets up a living trust, he or she continues to pay all associated income taxes. The trust has no effect on the grantor’s tax filing status. Also, there is no requirement to record or publish a revocable living trust – ensuring that personal information remains private. However, a probate proceeding is a public matter, and so private personal information is typically made public.
Schedule a Consultation with a Trust Attorney Today
To learn more about developing a trust in North Alabama, contact an elder lawyer from our team. Schedule a phone or office consultation today by calling (256) 539-4464 or completing an online case evaluation form.