What is an inheritance trust?

An inheritance trust is a legal arrangement in which one or more persons, known as a trustee, manage money or other assets belonging to someone else, known as the beneficiary. It is commonly used in Michigan wills and probate law. Inheritance trusts are designed to manage assets for the benefit of the beneficiary, while also taking into account the tax and other liabilities associated with inheritance. Through the trust, the trustee has control over the assets and can make decisions to benefit the beneficiary’s financial standing. This includes managing investments, having access to income, or donating or transferring the assets to another person. A trustee is responsible for managing the assets as specified in the will or trust document, and for ensuring that taxes and other expenses are properly paid. This includes keeping records of the trust transactions and providing the beneficiary with copies of any financial documents. Inheritance trusts can be set up during the life of the will maker, or after death. They provide an added layer of protection and control over inherited assets so they are not squandered or lost. Inheritance trusts can also help beneficiaries from future lawsuits, creditor claims, divorce settlements, or money squabbles among family members.

Related FAQs

How can I find a good lawyer to help with my will and probate matters?
Are there any limitations on what I can give away in a will?
What is the difference between a will and a living will?
How are payments distributed through probate?
What is a no-contest clause?
What is the difference between a will and a power of attorney?
Can I make changes to a trust after I die?
How do I contest a will?
What is the difference between a revokeable and irrevocable trust?
How do I change or revoke a living will?

What is an inheritance trust?

Related FAQs

Related Blog Posts