A Guide to Asset Protection and Investment Services
In estate planning, trusts have emerged as powerful asset protection and wealth management tools. In Tennessee, setting up a trust can seem daunting due to the complex nature of Tennessee’s trust law. However, with the proper guidance, you can navigate these waters smoothly. This blog post will explore the requirements for setting up various types of trusts in Tennessee, including the Tennessee living trust, Tennessee revocable living trust, and Tennessee irrevocable trust.
What is a Trust?
A trust is a legal arrangement where one party, known as the trustee, holds and manages assets for the benefit of another party, the beneficiary. In Tennessee, trusts can be categorized into two main types: Revocable and Irrevocable.
Tennessee Living Trust and Revocable Living Trust Tennessee
A Tennessee living trust, also known as a revocable living trust in Tennessee, is a type of trust that you can alter or cancel at any time during your lifetime. The primary benefits of setting up a revocable trust in Tennessee include avoiding probate and maintaining privacy about your estate after death.
To set up a revocable living trust in Tennessee, you need to draft a trust agreement, name a trustee, and transfer your assets into the trust. Understanding that a revocable trust in Tennessee becomes irrevocable upon the grantor’s death is crucial.
Tennessee Irrevocable Trust
Unlike a revocable trust, an irrevocable trust in Tennessee cannot be altered or canceled without the permission of the trustee and the beneficiary. The key benefit of a Tennessee irrevocable trust is that it provides superior asset protection as it removes your legal ownership of assets, protecting them from creditors.
Tennessee Asset Protection Trust
Tennessee trust law offers a unique kind of trust known as the Tennessee Asset Protection Trust. This trust allows you to protect your assets from creditors while maintaining some control over them. It’s an excellent option for those who want to ensure their assets are secure and well-managed.
Tennessee Investment Services Trust
Another unique trust under Tennessee trust law is the Tennessee Investment Services Trust (TIST), also known as a TIST trust. This self-settled asset protection trust is designed specifically for investment assets. The TIST trust provides numerous tax advantages and is ideal for high-net-worth individuals.
How to Set Up a Trust in Tennessee
When setting up a trust in Tennessee, whether it’s a TN living trust, a Tennessee revocable living trust, or a Tennessee irrevocable trust, it’s crucial to adhere to Tennessee trust requirements. These include drafting a trust document, naming a trustee, identifying beneficiaries, and transferring assets into the trust. It’s highly recommended to seek legal counsel when setting up a trust to ensure all requirements and your assets are adequately protected.
In conclusion, understanding Tennessee trust law and Tennessee trust requirements is essential for effective estate planning. Whether you’re considering a Tennessee living trust, revocable living trust, Tennessee irrevocable trust, Tennessee asset protection trust, or a TIST trust, the McBrien Armistead Law Group is here to help. Our experienced attorneys can guide you through the process and ensure that your assets are protected, and your wishes are carried out.