Families in Santa Fe, NM have many different estate planning tools at their disposal. For example, wills are useful for dispersing assets to heirs upon a person’s death. However, wills are often subject to probate court, which can be an expensive and lengthy legal process depending on the complexity of the estate in question.

Trusts are another type of estate planning tool that can be used on their own or in conjunction with wills or other methods. Roybal-Mack & Cordova, PC has extensive experience in multiple areas of estate planning, including the creation of trusts. With our assistance, you can take steps to safeguard your estate and prevent your family from facing significant financial issues after you’re gone.

How Trusts Work

Creation of a trust involves three different aspects. First, the estate owner creates a trust as a part of his or her estate planning process. Next, assets are transferred to the trust, which then becomes their owner. Finally, a trustee is named, and this is the person responsible for overseeing assets once they’re placed within the trust.

Different Types of Trusts

While there are many different types of trusts, these estate planning documents typically fall into one of two categories:

  • Irrevocable Trusts – As the name implies, an irrevocable trust is unchangeable once assets have been passed over. Once the trust has been created its terms remain in place. Accordingly, a trust maker cannot also name himself as trustee when creating an irrevocable trust.
  • Revocable Trusts – This type of trust is capable of being changed after its created. Additionally, you can name yourself as trustee, which provides more control over your estate. In this case, you may also consider implementing a successor trustee, who would take the reins in case you become incapacitated.

How to Properly Fund Your Trust

Creating a trust is just one aspect of estate planning. You must also ensure your trust is properly funded with assets. Funding a trust can be complex, especially when it comes to different types of assets and property. For example, assets with titles will need to be altered so the owner listed on the title is the trust fund and not the creator of the trust.

If you have a life insurance policy, the beneficiary designation must also be filled out to name the trust. If these steps aren’t taken, the assets won’t be included in the trust. This means that they may be subject to probate, which can cost your estate and burden your family.

Why You Need a Trust Attorney

Roybal-Mack & Cordova, PC recognizes that the rules governing trusts can be complex. That’s why they provide support to Santa Fe clients who have questions about properly funding trusts, appointing trustees, and other pressing questions regarding your estate.

If you’d like to discuss your needs, feel free to call us at 505.832.3411 to schedule a consultation. You can also learn more about our trusted team of attorneys online.

Dedicated Advocacy. Meaningful Results.

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