When you create a trust, you are making an asset into a wholly separate legal entity to protect yourself or your designated loved ones' financial interests. 

To accomplish this in Virginia, there are two very broad types of trusts: living trusts and testamentary trusts.

A living trust, or a revocable trust, is created during a person's lifetime. A will builds a testamentary trust - it will not exist until the person's death when the will goes into effect.

In Virginia, there are three things that every trust has to have to be valid. They need a grantor (the person creating the trust), a trustee (the person who will manage the trust), and a beneficiary (the party for who should benefit from the trust) 

Revocable and irrevocable trusts

Another significant distinction between trusts is deciding between a revocable and irrevocable living trust. This distinction impacts 

This is in contrast to an irrevocable trust. Once this type of trust is formalized, the grantor cannot make any changes without the trustee's consent.

This distinction can be the difference between the trust asset being part of your estate or not, and that can make ALL the difference. Irrevocable living trusts are used to produce specific tax or asset protection results. 

Revocable living trusts are more common. You can use this type of trust to avoid probate of the assets or plan for mental instability.

Social security and trusts

Depending on the type of trust, it can impact your SSI income

These are only a few of if things need to be considered when planning your estate or drafting a document to provide for a loved one well past your own life. This is NOT something that can be handled by a "make your own will" website that will only fail after your death and leave your family unprotected.

Need help

In addition to what type of trust you may need and how it can impact your other sources of income, you also have to navigate how Virginia or DC law may influence your trust.

Don't delay. Reach out and schedule a time to talk about what you need and how we can protect you and your family. Book a consultation here.