Trusts are powerful legal tools that allow you to protect and transfer your assets according to your wishes. They can be structured to meet a wide range of personal and financial goals, whether you’re planning for long-term medical care or want to limit a beneficiary’s inheritance.
Creating a Trust is more than just a method to distribute wealth. These instruments can offer privacy and help avoid probate. Whether you’re planning for a family, addressing complex real estate holdings, or looking ahead to long-term care considerations, Trusts offer flexibility and control.
ELG Estate Planning helps Liberty Lake residents understand how Trusts can benefit their personal and financial goals. We work with clients to understand their objectives and then tailor each plan to their specific needs. Contact us today to speak with our knowledgeable Trust attorneys serving Liberty Lake and find out how we can help you.
A Trust is a legal arrangement through which a trustee holds and manages assets on behalf of beneficiaries. The person who creates the Trust is known as the grantor, settlor, or trustor. They set the terms under which the Trust operates, and the trustee manages the Trust in accordance with these terms.
Individuals use trusts for various purposes, including avoiding probate, reducing estate taxes, protecting assets, and avoiding some of the family issues inheritance can cause.
There are multiple types of Trusts available. Depending on your needs, certain kinds of Trusts may provide strategic advantages. The following are some of the most common Trust structures.
A Revocable Living Trust allows you to retain control of your assets during your lifetime while designating
how they should be managed or distributed upon your death or incapacity. You can amend or revoke this Trust at any time. This tool is particularly valuable for avoiding probate and maintaining your privacy since any asset going through probate is a matter of public record.
Once established, Irrevocable Trusts generally cannot be changed. This type of Trust is frequently used for asset protection and estate tax benefits, and removing assets from an estate may also help the grantor qualify for Medicaid.
Testamentary Trusts are created through a Will. Therefore, this type of Trust only goes into effect after your death. It is commonly used for protecting your minor children or other beneficiaries, especially when they (or another beneficiary) may not be ready to manage an inheritance.
Special Needs Trusts are designed so that a loved one with a disability can receive financial support—all without jeopardizing eligibility for public benefits like Medicaid or Supplemental Security Income (SSI).. If you have a child or other dependent with disabilities, this type of Trust can give you peace of mind, knowing they will be provided for if anything happens to you.
Each of these Trust types serves a distinct role. Not sure which kind of Trust will meet your personal or financial goals? ELG Estate Planning regularly helps Liberty Lake clients choose the appropriate Trust structure to support their needs.
Creating a Trust allows you to manage and protect your assets. There are several reasons people often choose to create a Trust:
Avoiding probate: Probate can be a time-consuming and expensive process. Plus, probate is a matter of public record. If you want to make the inheritance process easier and more private, Trusts are a great way to distribute assets.
Controlled distribution: Trusts also allow for controlled asset distribution. This feature is particularly helpful for beneficiaries who may need financial guidance or protection from receiving a lump sum.
Incapacity planning: Trusts can provide a framework for incapacity planning. A successor trustee can manage the Trust if the grantor becomes unable to do so.
Potential tax advantages: Depending on your estate size and goals, Trusts may offer tax advantages both before and after your death.
Asset protection: Finally, properly drafted Trusts, depending on the type, can protect your gifts to beneficiaries from creditors, lawsuits, or divorce proceedings,
A trustee is considered a fiduciary. Fiduciaries are legally obligated to act in the best interests of the beneficiaries. They must exercise a high degree of care and loyalty when managing Trust assets, distributing funds, and maintaining accurate records. They are also responsible for regular communication with beneficiaries, which helps promote transparency and accountability.
When you establish a Trust, you can appoint a family member or close friend to act as a trustee. Alternatively, you may choose a professional trustee—typically an attorney, CPA, or financial institution. Each option comes with pros and cons, so we recommend discussing your choices with your Liberty Lake estate planning attorney before deciding on trustees and successor trustees.
Liberty Lake Probate LawyersCreating a Trust is just the first step. The Trust will not function as intended unless it is properly funded—but what does that mean?
Funding a Trust simply means transferring ownership of your assets into the Trust’s name. Without this step, the Trust cannot manage or control those assets. If you pass before your Trusts are funded, your loved ones may not be able to avoid probate.
Real estate, with deeds transferring ownership to the Trust
Bank and investment accounts, updated to name the Trust as the owner
Business interests, which may require formal assignments or amendments to operating agreements
However, not all assets should be placed directly into a Trust. For example, retirement accounts (like IRAs or 401(k)s) typically work best when you designate individual beneficiaries. In some cases, you may be able to name the Trust as a beneficiary.
ELG Estate Planning helps our Liberty Lake clients create and fund Trusts, including proper titling. This process allows the Trust to operate smoothly and minimizes court involvement. Meanwhile, you can rest assured that your wishes will be carried out exactly as intended.
Depending on the type of trust you create, you may be able to update and amend a trust during your lifetime. One of the key advantages of a Revocable Living Trust is its flexibility. A revocable trust can be amended, modified, or fully revoked by the grantor at any time during their lifetime, as long as they remain mentally competent.
Marriage, divorce, or remarriage
Birth or adoption of children or grandchildren
Substantial changes in assets, such as acquiring real estate or selling a business
Death or incapacity of a trustee or named beneficiary
Failing to update a trust can lead to unintended consequences after death or incapacity. The experienced estate planning attorneys at ELG Estate Planning can help you create and update Revocable Living Trusts whenever these events occur.
Creating a Trust is an effective way to protect your assets, avoid probate, and provide for your loved ones. Whether you’re just starting the estate planning process or want to update an existing Trust, a knowledgeable estate planning attorney can guide you through the process and draft the relevant documents to meet your needs.
ELG Estate Planning offers practical guidance grounded in Washington law. We take the time to understand your unique goals before creating a proactive plan. From selecting trustees to funding your Trust properly, our team can help you put the right structures in place. Contact us today for a consultation with an estate planning lawyer serving Liberty Lake.
