Discretionary Trusts Lawyer Des Moines, IA
If you are interested in learning more about how setting up a trust could benefit you, your loved ones, and/or causes that you care about, please schedule a risk-free consultation with a knowledgeable Des Moines, IA discretionary trusts lawyer at the Law Group of Iowa today.
Trusts are complex legal resources that can be tailored to meet the needs of individuals regardless of their socioeconomic status and regardless of how complex their assets either are. From grandparents hoping to provide for a grandchild’s education to a high-wage earner looking to minimize their estate tax liability, our Des Moines discretionary trusts lawyer team can creatively, efficiently, and effectively assist in meeting anyone’s estate planning needs in varied ways.
Categorizing Trusts: Why This Process Matters
There are two primary considerations that must be taken into account when a trust is being created. The first is whether the trust itself will be revocable or irrevocable. A revocable trust may be amended or canceled by its creator under relatively flexible circumstances. Irrevocable trusts cannot be amended by their creator once they’ve been executed.
The flexibility of revocable trusts is one of the reasons why these legal resources are so popular. Yet, there are benefits associated with irrevocable trusts under certain circumstances. For example, by setting up an irrevocable trust, a creator surrenders their ownership rights to the assets contained within the trust. This arrangement can allow a trust creator to limit their estate tax liability in the event of their death.
The second primary consideration one must take into account when creating a trust is whether it will be fixed or discretionary. Trusts that are fixed contain terms that only permit a trustee to distribute assets at specific times and/or in specific amounts. For example, an educational trust may stipulate that funds can only be distributed to meet the exact dollar amount that a college charges for tuition, room, and board each term.
Conversely, discretionary trusts are more flexible. Their terms allow assets to be distributed based on discretionary considerations like a beneficiary’s general welfare. Under these subjective circumstances, the perceptions of the trustee will determine how much and when assets are distributed.
Although the trust creator can clarify their general wishes and intentions within the text of a discretionary trust, it will ultimately be up to the trustee to resolve matters of asset distribution based on the overall purpose of the trust and the need of its intended beneficiary or beneficiaries. This arrangement can be particularly beneficial if the beneficiary of a trust is likely to make a claim against the trust in an effort to secure more assets all at once against the intentions of the trust’s creator.
Legal Assistance Is Available
No matter what you hope to achieve by creating a trust, the Des Moines discretionary trusts lawyer team at the Law Group of Iowa can advise you and help you to achieve your goals. Whether a discretionary trust structure is in your best interests will depend upon your unique needs, vision, and circumstances.