Definition:
In Michigan, for estate planning purposes, a Trust is an agreement between a Trustor and a Trustee to manage assets. The Trust Agreement is typically in writing and contains provisions on how the Trust assets are to be managed when executed and in the future.
What type of instructions and wishes can be expressed in a Trust?
A Trust can provide instructions on how to distribute property, who will be in charge of distributing property, when the property is to be distributed, and provide for restrictions on distributing property.
What are the benefits of using a Trust in estate planning?
The primary benefits of using a Trust for Estate Planning are privacy, probate avoidance, and protecting assets from beneficiaries from themselves and creditors.
What are the drawbacks from using a Trust in estate planning?
The main drawbacks from using a trust in estate planning are cost, complexity, and utility.