Nashville Trusts in Divorces Attorney
Experienced Trusts In Divorces Lawyers in Nashville, TN
Before considering how the court treats trusts in a divorce case, it is better to briefly understand how it operates. You can also find several kinds of trusts that function differently and have different implications in a divorce. Our skilled Nashville trusts in divorces attorney is here to walk you every step of the way.
What Is Trust?
A trust is a legal tool for managing assets, be it investments, property, or cash. Every trust tends to have a settlor who creates the trust and helps transfer assets you own into it.
The settlor will have a lot of flexibility when setting up the trust. They can name individuals as beneficiaries, classes of individuals (like “my grandkids”), or groups. They can also be specific about who is entitled to the trust, or they can leave it up to the trustees to finalize who they wish to bestow assets upon, the timing of distributions, and the total amounts. The settlor will also help name several beneficiaries who will benefit from all the assets the trust holds.
A settlor can be specific regarding if they wish the trustees to distribute only the income, the capital, or both from the trust to a class, beneficiary, or beneficiaries. You must understand that the trustee will legally hold the property but won’t be entitled to it. Therefore, the trust assets are registered under the names of the trustees. They are responsible for managing the trust assets on behalf of the beneficiaries.
In addition to a trustee, some trusts tend to have an official protector. A protector is ideally supposed to restrain or direct the trustees in how they use their power. The protector’s power tends to vary depending on the final terms of the trust, but they will have the ability to dismiss the active trustees and instead appoint a new one. Our Nashville divorce attorney is also on your side and can help you in determining your assets.
Why Should You Create Trust?
Ethan R. Page, a professional Nashville trusts in divorces attorney, says you can create a trust to mitigate tax, especially inheritance tax. They can be used for privacy, too, as the real identity of the beneficiaries will not be available as public information, and all assets are registered under the names of the trustees.
Trusts can also be used to manage funds for individuals who can handle them themselves; for instance, they may to too young or can’t do so.
Different Kinds of Trust And Your Nashville Trusts In Divorces Attorney
When you speak with a professional Nashville trusts in divorces attorney, they will inform you about the various kinds of trust that often feature in a divorce case. These include:
Fixed Interest Trusts
As the name suggests, in a fixed interest trust, the beneficiaries will have a specified interest in the trust (for example, 20% of the trust assets). The trust will generally provide that the beneficiaries will be entitled to their capital share from the trusts after a particular event occurs. It is often the death of one of the beneficiaries (who will have been entitled to the income, not the capital, from the trust) or after a specific event, for instance, after attaining a particular age.
A bare trust is used to help manage assets for children who are still minors. The trustee will help manage all assets on behalf of the children. However, once the kids reach proper legal age, they will be entitled to income and capital from the trust.
In this form of trust, the settlor will name several beneficiaries and may guide the trustees using a letter of wishes stating how they would like the assets to be distributed. Nevertheless, as the same suggests, who will receive the trust assets, when will they receive them, and in what amounts will be left to the discretion of the trustees.
Our professional Nashville trusts in divorces attorney say discretionary trust tends to cause the most issues in a divorce as the court is required to finalize whether it’s likely that there will be any distributions to one of the members and, if so, when and in what amount.
Need More Information? Contact Rogers, Shea & Spanos Right Away!
If you have more questions about trusts and how they may affect your divorce, contact our professional family lawyers from Rogers, Shea & Spanos at the earliest opportunity. They have tons of training that enable them to answer any questions you may have regarding trusts. Wish to learn more about how our Nashville Trusts in Divorces Attorney can help you understand or create a trust? Contact us at 888-521-9952 immediately!