Can I Still Control Assets in a Trust?

Have you been thinking about creating a trust as part of your estate plan in Canton? If so, you may know that one of the major benefits of a trust is that assets can be distributed from a trust without having to go through the probate process in Connecticut. As such, your beneficiaries can have access to assets in a trust much more quickly, and with far fewer complications, than if those assets had to go through probate. There are other benefits of trusts, too, depending on the type of trust. Assets in a trust are protected from creditors, and trust assets can be distributed to a beneficiary without affecting that beneficiary’s eligibility for public benefits.

While a trust might sound like a great option, you may be wondering how the establishment of a trust will affect your control of the assets. For example, will you still be able to manage the assets in the trust and have access to those assets? The answer will depend on the type of trust. Our Canton trusts attorney can explain in more detail.

Revocable Trusts Are Different from Irrevocable Trusts

If you create a revocable trust, often known more fully as a revocable living trust, you will retain control over the trust. This type of trust still allows your beneficiaries to avoid probate, but you can make any changes you want to the trust during your lifetime, and you can also decide to cancel the trust altogether.

An irrevocable trust cannot be amended or canceled once it is created, and the person creating the trust does lose control over it. While a revocable trust may sound preferable for this reason, it is important to weigh the benefits and limitations. With a revocable trust, you do not receive some of the benefits associated with different types of irrevocable trusts in Connecticut.

Benefits of an Irrevocable Trust Despite Losing Control of the Assets 

There are specific benefits associated with different types of irrevocable trusts that you cannot get with a revocable trust. For example, you can protect assets from Medicaid if you need long-term care and do not want to have to spend down a lifetime of savings on the very high costs of nursing home care. Or, for instance, you can protect a disabled adult child’s eligibility for public benefits while still providing for them with a special needs trust. You can also help a child, relative, or other loved one financially without allowing creditors to come after those assets if your beneficiary has debt issues or tends to spend money irresponsibly. All of these are benefits that come with an irrevocable — and not with a revocable — trust.

Contact a Canton, Connecticut Trusts Attorney for Assistance 

If you are thinking about creating a revocable or an irrevocable trust as part of your estate plan, it is important to work with an experienced Canton trusts lawyer at the Law Office of Brian S. Karpe. We regularly assist clients in Connecticut with trusts and other aspects of estate planning, and we can speak with you today about your specific needs. Contact our firm to learn more about how we can help.

Source:

cga.ct.gov/2023/pub/title_45a.htm