Trusts

A trust is a written contract under which legal title to assets is transferred to a trustee who holds, invests and administers the assets for the benefit of those designated as the beneficiaries of the trust. Trusts are created to provide relief from the burden of managing property, to provide financial security for a loved one, to protect and provide for minors, to minimize probate as a means of giving to charitable organizations, and for tax reasons.

It is a common myth that trusts are only for wealthy people. In truth, trusts are a valuable estate planning tool that can benefit estates of all sizes. At Feeney & Kuwamura, P.A., we are well versed in the technicalities surrounding drafting effective trusts that serve the needs of all our clients, small and large alike.

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Anyone with minor children, anyone with a dependent who has special needs, and anyone with a desire to provide assistance — for a relative, a friend or an institution — should consider a trust.

When it comes to charitable giving, a trust can be a great vehicle both for providing financial support to a favored organization while still maintaining some level of control over how the assets are dispersed. Charitable trusts could be used, for example, to fund scholarship programs or scientific research.

Revocable vs. Irrevocable Trusts

A revocable living trust is a document that appoints someone to manage your property for your benefit and possibly for the benefit of others while you are still alive. The trust may be administered in the event of your incapacity or if you simply do not want to handle the day-to-day issues involving managing your assets. Trusts can also be utilized to manage property in other jurisdictions.

In an irrevocable trust, the grantor (the owner) of the property permanently gives up ownership and control of it. These may seem restrictive, but they can have great tax benefits for the grantor. Generally, the recipient of the trust property is responsible for paying taxes on any income generated by it.

Our firm's lawyers can advise you on which particular trust would best meet your needs. Trusts can be important estate planning tools. Contact us today to schedule an appointment to discuss the possible use of trusts in your estate plan.