Types Of Trusts

Trusts can be a useful part of an estate plan. They give you a bit more control over how an inheritance is distributed or how it is used by your beneficiaries. Trusts can also accomplish other specific goals that are impossible with only a simple will.

Here at Riach Gese Jacobs PLLC, our attorneys have extensive experience dating back to 1959. This means that our lawyers are uniquely positioned to help you consider all of your estate planning options and how they will be best utilized for your family. In Lynnwood, this may include the use of trusts, depending on your estate planning goals.

Common Trusts In Washington

Below are a few of the main types of trusts often used with estate planning in Lynnwood or Seattle, Washington, along with a brief description of how they can help:

• Testamentary trusts: These are trusts that help to distribute assets but do not take effect until the person who created the trust passes away.
• Living trusts: These trusts are created while a person is still alive and can address things in their life, such as the medical care that they want at the end of their life.
• Revocable trusts: A revocable trust is one that can be changed or altered after it has been established, as long as the grantor is still alive to make those alterations.
• Irrevocable trusts: These trusts, on the other hand, cannot be changed in most cases. They can be useful for moving assets out of someone’s estate, which sometimes has positive tax benefits.
• Special needs trusts: A beneficiary with special needs may qualify for certain government benefits, and an inheritance could disqualify them. A special needs trust can hold the money so that they still qualify for the benefits they deserve.
• Charitable trusts: These trusts help to hold assets and pass them on to charitable organizations.
• Dynasty trusts: A dynasty trust is one that can provide financial assets for multiple generations.

As you can see, all of these trusts serve slightly different functions, so our experienced team can help you carefully consider what will work best for you, your estate plan, and your family members and beneficiaries.

Common Questions About Washington Trusts

A trust should reflect your goals, assets and family needs. As your life changes, you may need to review how the trust works. The following answers address common questions about trust planning in Washington:

How do I know if I need a revocable or irrevocable trust?

Your planning goals should determine which type of trust is more suitable. A revocable trust may be appropriate when you want to retain control over the assets and revise the terms during your lifetime. It can also provide a structure for managing property if illness or incapacity prevents you from handling your affairs.

By contrast, an irrevocable trust usually restricts later changes and may support certain tax, public-benefit or asset-protection objectives. Those advantages depend on the trust language, the assets involved and your overall estate plan. An attorney can explain these differences and help you evaluate the consequences before you transfer property.

What happens to my trust if I move out of Washington?

Moving does not usually cancel a valid trust. Still, your new state may have different rules on taxes, property and trust administration. The trust may also name Washington as its governing law or principal place of administration. Those terms can affect how the trustee manages the assets after your move. After relocating, you should have the trust reviewed to see whether updates or a change in its location may help.

Who should I choose as a trustee for my Washington trust?

Your trustee should be dependable, organized and able to follow the trust terms. The person may need to manage investments, keep records, file tax returns and communicate with beneficiaries. Because those duties can continue for years, consider the person’s judgment, availability and ability to remain neutral. You may choose a family member, friend or qualified professional, but you should also name a successor in case your first choice cannot serve.

Can I change my trust after it is created?

Your ability to make changes depends on the trust type and its terms. You can generally amend or revoke a revocable trust while you have legal capacity, as long as you follow the required method. An irrevocable trust is harder to change, but modification may still be possible through consent, an agreement or court action. Since an improper change may not take effect, legal guidance can help you follow the correct process.

Call Now For A Consultation

Our attorneys are known for creating specially tailored estate plans and providing dedicated legal guidance while answering your questions. We would be happy to start this process at an initial consultation. Just call 425-329-7857 or use the online contact form.