Trust Attorney in Charleston, South Carolina

Planning for your future can be exciting and stressful. Some people have already started estate planning either through a will or trust, while others don’t even know where to start. No matter what stage you’re at, you should learn about the different options within an estate plan, specifically the benefits of setting up a trust.

There are a few different types of trusts you should get familiar with so that you can decide which combination of documents is best for your needs. To get an attorney’s help, call me at the Mangus Law Firm and set up a planning session. I serve those in Charleston, South Carolina, and throughout Charleston County, Berkeley County, and Dorchester County.

Overview of Trusts

A trust is a common estate planning tool that works in a similar manner to a will; however, there are some key differences. Before choosing to go with either option, it’s essential to answer the question: “How is a trust different than a will?”

A will lets you name beneficiaries for your assets, a legal guardian for minor children, and an executor who’s responsible for administering your will. The will does not take effect until after your death, which is when the executor's role begins.

A trust also allows you to name certain beneficiaries to receive assets, but the key difference is that you’ll transfer the assets out of your name while you’re still living. This is done by naming a trustee who will become the legal owner of your assets. Then, when you do pass away, your trustee can transfer those assets directly to your beneficiaries.

There are two main types of trusts:

Revocable: Also called a “living trust,” this option is the most commonly used when estate planning. Essentially, it allows you to move assets under the name of your trustee while remaining in total control over them. At any time, as long as you’re still considered to be of stable mind and body, you can make changes to the trust including adding and removing assets, changing your beneficiaries, and even changing your trustee. After you pass away, instead of assets going through probate, they can be transferred immediately to your beneficiaries since you’re no longer the “legal” owner—your trustee is.

Irrevocable: An irrevocable trust cannot be changed or “revoked” once it’s established. However, they still work in the same manner as a revocable trust in that after you pass away, your trustee can move the assets directly to your named beneficiary. Irrevocable trusts are not ideal for everyone, but if you’re concerned about the tax penalties for you or your heirs, they could be a good choice.

Process of Creating a Trust

The most important step to take when opening a trust is to meet with an experienced estate planning attorney. You may have an idea of what assets you’d like to place in the trust, who your beneficiaries will be, and even who your trustee will be. But if you don’t use the correct legal language, you run the risk of the trust being contested or invalidated in court.

Only by meeting with a skilled estate planning attorney can you thoroughly examine all your options and pick the path that works best for your needs and long-term goals.

Why Having a Trust is Important

As stated above, not everyone needs a trust, but the benefits of having one can often far outweigh the time and financial commitment they take to get started. Consider the following advantages:

Bypass probate: Probably the biggest advantage of a trust is that it bypasses the probate process. If you only have a will in place at the time of death, it will need to be processed through the courts. Probate can take several months and cause your loved ones unnecessary stress during their time of grief.

Assets can be kept in trust until a future date: Many parents like using a trust because you can hold assets until a predetermined date, for example when your child turns 18 or graduates from college. This lets you have more control over how your assets are used, even after you pass

Protection in case of mental incapacitation: If you become mentally incapacitated, a trust can take effect which can dramatically ease the burden on your family and loved ones.

Privacy: Wills become part of the public record when you die, but trusts are kept private and confidential.

Things to Consider When Choosing a Trustee and Naming Beneficiaries

Perhaps the two biggest decisions to make with a trust are who your trustee and beneficiaries will be. Remember, if you opt for a revocable trust, both these roles can be modified at any time. However, you should put a lot of thought into it regardless. Your trustee should be someone you have confidence in and who will execute your trust according to your wishes. This could be someone you know, but it can also be a lawyer or trustee company.

When naming beneficiaries, consider revisiting your trust every five to ten years to ensure it still accurately reflects your wishes. Circumstances can change considerably over the years and you’ll likely want to change your beneficiaries along with big life changes like marriage, divorce, having children, or retiring.

Trusts Attorney in Charleston, South Carolina

If you’re in the Charleston, South Carolina, area and would like to know more about your options for setting up a trust, reach out to me at the Mangus Law Firm today. You can depend on me for compassionate and knowledgeable legal guidance. No matter your estate size or your goals for it, I want to help you build a plan that clarifies your wishes and meets the needs of your beneficiaries.