Estate planning consists of several tools that are important for Georgia parents who are looking to protect the well-being of their children. Parents can provide protection from the possibility of incapacity or death by ensuring assets are used for their children’s benefit. In many cases, this situation will call for the use of a revocable living trust as part of the estate planning documents.
One estate planning attorney defines the revocable living trust as an box with instructions on the outside. This form of trust can be changed or done away with entirely by the settlor. It is created with the settlor as the trustee until his or her death or legal incapacity. At that time, authority for fulfilling the instructions will pass to the next named trustee.
The trust is merely an estate planning instrument likened to a box with instructions. Assets must be placed inside the box for it to have value. Examples of possible assets placed include the family home, cash and family heirlooms. The will can also designate assets be placed into the trust upon death. These assets will not be subject to lengthy probate proceedings.
Though the need for and creation of a specific type of trust may be understood, the legal consequences on ownership and taxation both before and after death can be complicated. Beyond financial planning for beneficiaries, Georgia parents will want legal counsel to help create and review documents for their ability to withstand legal challenges. These and other concerns make the estate planning attorney an important part of preserving and protecting assets.