Morrison Law Group, PLC

Estate Planning | Business Planning

Attend a Free Workshop SCHEDULE A CONSULTATION
(504) 831-2348
  • Home
  • Our Firm
    • About Our Firm
    • Attorney and Staff Profiles
    • Speaker Connection
  • Estate Planning
    • Asset Protection
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • Pet Planning
    • SECURE Act
    • Special Needs Planning
    • Probate and Successions
  • Elder Law
    • Are You A Caregiver?
    • Coping With Alzheimer’s
    • Emergency Medicaid & Nursing Home Planning
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
    • Veteran’s Benefits
  • Business Planning
    • Business Planning
    • Business Succession Planning
    • Family-Owned Businesses
  • Seminars
  • Resources
    • Estate Planning Resources
      • Estate Planning Definitions
      • Estate and Gift Tax Figures
      • Estate Planning Reports
      • Estate Planning Checkup
      • Is Your Estate Plan Outdated?
      • Incapacity Planning Definitions
    • Elder Law Resources
      • Elder Law Reports
      • Elder Law & Medicaid Definitions
    • Newsletters
    • Pre Consultation Form
    • Trust Administration & Probate Resources
      • Bereavement Resources
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
    • Special Needs Resources
    • Frequently Asked Questions
      • Estate Planning FAQ’s
      • Trust Administration & Probate Frequently Asked Questions
      • Legacy Wealth Planning FAQ’s
      • Frequently Asked Questions for Families Without an Estate Plan
    • DocuBank
  • Reviews
    • Our Reviews
  • Blog
  • Contact Us

The Truth About Trusts!

October 16, 2020 by Ronald "Chip" Morrison

A common misconception about trusts is that they’re very expensive to set up and advisable only for high-net-worth families. Although the wealthy have long used trusts, they actually can be both useful and economical for even modest-worth families. Here’s a basic overview of how a trust works:

  • A trust is created by you, the grantor. You write the rules governing how the trust will operate — what it will do and how and when to do it.
  • Trusts can be revocable — you’ll be able to change the rules at any time. But trusts can also be irrevocable, meaning you cannot change the rules.
  • You appoint a trustee, who will have the job of managing the trust and its assets. You may appoint yourself as the trustee. Trustees follow the trust’s rules. 
  • The trust receives gifts from a donor — and that can be you, too. You may permit your trust to receive gifts from others in addition to you or instead of you. Gifts can include cash, stocks, bonds, property, or other types of financial assets.
  • Your trustee collects the gifts and invests the money according to the rules of the trust; for example, the recipient gets the money after college graduation. You may stipulate a yearly income from the trust.
  • The trust has three things — the principal, which is the money given; interest and dividends earned from the principal also called income; and the profits, if any, from increases in the value of the principal, or capital gains.
  • The rules you’ve written for the trust will determine who gets the income, capital gains, and the principal. That recipient is the beneficiary.
  • Trusts can have many beneficiaries — family members, friends, charities, and even pets. Some beneficiaries are granted capital gains, while others get the principal. The trust states who gets what and when or under what conditions. The trustee makes sure the provisions in the trust are followed.
  • Different trusts do different things, so you may opt for more than one or even four or five. With living trusts, you place assets during your lifetime to be transferred to beneficiaries after your death. They are private and help you avoid probate. Testamentary trusts are contained in your will to provide for distribution after you pass; they can be used to provide for minor children.

The only way to know how a trust can help with your family’s estate plan is to speak with a board-certified estate planning attorney. If you’d like to speak with an expert on the different types of trusts and what’s right for your individual situation, schedule a meeting now. You can schedule online or by calling (504) 831-2348. 

  • Author
  • Recent Posts
Ronald
Ronald "Chip" Morrison
Ronald “Chip” Morrison, Jr. is a Board Certified Estate Planning Law Specialist as certified by the Louisiana Board of Legal Specialization. He is admitted to practice before all State courts in Louisiana. He is also admitted to practice before the United States District Court for the Eastern and Middle District of Louisiana.
Ronald
Latest posts by Ronald "Chip" Morrison (see all)
  • Updating Your Plan: Your Trust or Will - January 25, 2021
  • Choosing Beneficiaries Is Not Enough - January 23, 2021
  • Five Estate Planning Myths - January 22, 2021

About Ronald "Chip" Morrison

Ronald “Chip” Morrison, Jr. is a Board Certified Estate Planning Law Specialist as certified by the Louisiana Board of Legal Specialization. He is admitted to practice before all State courts in Louisiana. He is also admitted to practice before the United States District Court for the Eastern and Middle District of Louisiana.

Morrison Law Group, PLC

Subscribe Our Blog

Address

3813 N. Causeway Blvd. Suite 200
Metairie, LA 70002
Phone: (504) 831-2348

Office Hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
Friday9:00 AM - 3:00 PM

Evening appointments available upon request.

Map

MAP
  • Facebook
  • Instagram
  • LinkedIn
  • Pinterest
  • RSS
MORRISON LAW GROUP

© 2021 American Academy of Estate Planning Attorneys, Inc. | Disclaimer | Privacy Policy