Trusts are separate entities and arrangements between a trust maker, a grantor, a third party, a trustee, and an estate’s beneficiaries. After a grantor funds a trust, they hold the assets and property on behalf of estate beneficiaries, with the trustee overseeing fund distribution.
Estate planners may arrange a trust in various ways, depending on the specific purpose intended—such as a special needs trust. Schedule to meet with a lawyer who understands the types of trusts in O’Fallon. An experienced trust attorney at Polaris Estate Planning and Elder Law could help with your or your family’s estate planning.
Benefits of Creating Trusts
Trusts provide many benefits, with the most common including:
An attorney knowledgeable about the types of O’Fallon trusts could review a complete list of trust options and advantages during a private consultation.
Revocable and Irrevocable Trusts
Revocable trusts are more common and often preferable to irrevocable trusts, as the grantor can decide how and when distribution to the beneficiaries occurs. Revocable trusts also permit modification and dissolution of a trust at any point during someone’s lifetime.
In an irrevocable trust, however, the grantor cannot change beneficiaries or terms. While irrevocable trusts provide less flexibility, they may offer more tax advantages. Once a grantor transfers money to fund an irrevocable trust, the Internal Revenue Service (IRS) no longer considers the assets part of their estate.
Other Types of Trusts in Missouri
While revocable and irrevocable trusts are most common, other types of trusts are practical estate planning tools, including:
- Special Needs Trusts
- Asset Protection Trusts
- Multigenerational Trusts
- Charitable Lead or Remainder Trusts
Seeking legal guidance could be crucial to ensure the type of trust a grantor wants for their beneficiaries is properly chosen.
The Trustee’s Powers, Duties, and Legal Obligations
According to Revised Statutes of Missouri § 456.8-816, after accepting a trustee or fiduciary role, someone has a legal obligation to administer the trust in good faith and in the best interest of the beneficiaries. They must carry out their responsibilities as required by the law, regardless of whether they receive payment for their services.
The regulations prohibit trustees without the necessary skills or certifications from making legal judgments or preparing and filing tax returns. When such issues arise, the trustee must outsource the duties to a professional who understands trust types in O’Fallon.
Speak to an Attorney Knowledgeable About the Types of O’Fallon Trusts
A comprehensive estate plan can reduce stress for you and your family during this time. Using practical tools—such as trusts—can protect beneficiaries from ongoing probate or dispute litigation.
Trusts provide countless benefits, and choosing the right type of legal estate planning will depend on your unique needs and long-term goals. Schedule a meeting with a qualified lawyer skilled in the types of trusts in O’Fallon to review your options.