What is a Trust and Do I need one?
Hays Firm LLC drafts trusts for clients including young families with small children, business owners, and retired individuals. For each client, we walk through the complete estate planning process which begins by analyzing the client’s financial circumstances and goals. We then educate our clients about the range of estate planning options. Finally, the firm drafts the necessary documents and implements the appropriate estate plan.
For many of our clients a trust is an essential component of an effective estate plan. A trust is valuable because it can provide the flexibility necessary to respond to future circumstances. Other advantages of having a trust as part of your estate plan include the following:
- Avoidance of court supervision of assets in trust
- Delayed distribution that provides protection of a beneficiary from himself or herself
- Creditor protection for beneficiaries
- Provides needed management for family members with special needs
- Sets out a plan for handling of special assets, such as closely-held business interests
- Consolidation of wealth accumulations
- Creation of tax-saving provisions
- Planned successive management and administration
ESSENTIAL ELEMENTS OF A TRUST
The core elements that make up a trust are; (a) the settlor or creator of the trust, (b) the trustee, (c) the trust property, (d) the beneficiaries, and (e) the terms of the trust.
- The settlor is the creator of the trust.
- The trustee holds the legal title to the trust property for the beneficiaries in accordance with the directions and intentions of the settlor.
- The trust property is what the trustee holds and manages. The creator of the trust can add property to the trust at any time.
- The beneficiaries are the individuals or entities that the creator of the trust intends to benefit from the trust.
- The terms are the directions and the intentions of the settlor.
The attorneys of Hays Firm LLC are experienced in drafting trusts and preparing estate plans for clients in a variety of situations. If you would like to learn more about the how the firm can help you put together an estate plan, please contact us at (312) 626-2537 or via e-mail.