Trust Attorneys in Grainger County

Are you in the process of considering or creating an estate plan? If so, you might be wondering, “Do I need a trust in Tennessee?” A trust can be a great way to manage and distribute assets according to your wishes, and setting one up is a straightforward process with the right legal guidance from Daniel, Daniel, & Newman.

For over 80 years, Grainger County and Eastern Tennessee residents have known the Daniel name to stand for quality legal service. Evan M. Newman follows in the footsteps of his great-uncle Creed Daniel and Creed’s son, the late Dirk Daniel, in keeping that legacy alive. Our law firm is Christ-centered and keeps with the values and culture of the community.

Evan is here to handle every aspect of the trust planning process and can help you create a trust that suits your needs and goals. Whether you’re looking to protect assets for future generations or provide for a loved one with special needs, he can guide you every step of the way.

Contact Daniel, Daniel, & Newman today for a free initial consultation with a Tennessee trusts attorney to learn how we can help you secure your legacy with a trust.

How Can a Tennessee Trusts Lawyer Help Me?

An experienced lawyer like Evan will know how to create a trust in Tennessee and can help you customize the trust to fit your specific needs. They can also establish your trust in a way that conforms with Tennessee laws, which is necessary for the trust to function as intended.

An attorney can help you explore the different types of trusts, such as revocable or irrevocable trusts, and their respective benefits. They can explain complex legal terms in simple language so you can make informed decisions about your estate. Furthermore, a trusts lawyer can assist you in appointing a dependable trustee who will manage the trust’s assets according to your wishes.

When you work with a trust lawyer in Tennessee, you gain the assurance that a knowledgeable professional is handling all legal aspects of your trust properly. You also minimize the risk of future disputes or legal challenges. Your attorney can prepare your estate efficiently and accurately so it reflects your intentions, complies with relevant laws, and provides for your loved ones as you see fit.

What Is a Trust?

A trust is a legal arrangement where one person, known as the trustee, holds and manages assets on behalf of another person or entity, known as the beneficiary. You, as the person creating the trust, are known as the trustor or grantor. The purpose of a trust is to ensure that your assets are managed and distributed according to your specific wishes, either during your lifetime or after your passing.

When you set up a trust, you transfer ownership of your assets — like real estate, bank accounts, or investments — to the trust. The trustee then follows the instructions you’ve laid out for managing and distributing these assets. You can set rules for how and when your beneficiaries receive assets from the trust. For example, you could require your beneficiaries to reach certain ages or milestones before they can receive their inheritances.

Trusts are useful because they can allow your beneficiaries to avoid probate and reduce estate taxes. Your trustee can also take on the responsibility of financial management if your beneficiaries are not yet capable or willing to handle lump sums of money on their own.

What Are the Benefits of Creating a Trust?

There are numerous advantages to creating a trust as part of your estate plan in Tennessee. Trusts offer a versatile and effective way of managing and distributing your assets according to your wishes, both during your lifetime and after. They can cater to a range of personal and financial situations that allow your estate to avoid the often lengthy and public process of probate.

Among the key benefits of creating a trust include the following:

• Control Over Asset Distribution – A trust grants you control over when and how your assets go to your beneficiaries. For example, you might stipulate that your children may only inherit at a certain age, or you could set up educational stipends that pay out at specific milestones.
• Avoidance of Probate – One of the main benefits of a trust is that it allows you to avoid probate. Probate can be a time-consuming and costly process that burdens your heirs with months or even years of waiting before they can claim their inheritance. With a trust, assets can transfer to beneficiaries without the oversight of a court.
• Privacy Preservation – Unlike a will, which goes through the public process of probate, a trust is more private since it prevents the details of your estate from becoming public record. This can be beneficial if you wish to keep the specifics of your assets or beneficiaries confidential.
• Legal Protection – Trusts offer stronger protection against legal challenges than wills. If you’re concerned about disputes among heirs or claims against your estate, a trust can provide a more secure means of ensuring your assets are distributed according to your wishes.
• Flexibility for Future Changes – Certain trusts, like revocable trusts, provide the flexibility to adjust the terms as your circumstances change. This way, you can keep your estate plan aligned with your current wishes and never need to start the planning process from scratch.

What’s the Difference Between a Trust vs. a Will in Tennessee?

The main difference between Tennessee wills and trusts centers on how they facilitate the management and distribution of your assets.

A will is a document that outlines how you want your property distributed after you die. It only takes effect upon your death and must go through probate, a public and often lengthy legal process that involves validating the will.

A trust, on the other hand, takes effect as soon as you create it and can manage your assets during your lifetime and after your death. Unlike a will, a trust typically bypasses probate, allowing for a speedy and private transfer of assets. Additionally, trusts offer more control over when and how your assets get distributed to your beneficiaries.

What Are Common Types of Trusts in Tennessee?

Trusts are versatile legal tools used to manage and protect assets according to your wishes. There are many different types of trusts in Tennessee, each designed to serve specific purposes and meet various needs:

When you meet with Evan, he can explain the benefits of each kind of trust and help you decide which ones could be best for you.

What’s the Difference Between a Revocable Trust and an Irrevocable Trust?

A revocable trust, also known as a living trust, allows you to maintain control over the assets within the trust while you are alive. You can alter, change, or even cancel the trust at any time. This flexibility means you can adjust the trust’s terms as your situation or wishes change. A revocable trust in Tennessee becomes irrevocable upon your death, meaning no further changes can be made.

An irrevocable trust, on the other hand, is one you cannot alter once you establish it. When you transfer assets into an irrevocable trust, you effectively remove your ownership rights over those assets permanently. This type of trust offers significant tax benefits, as the transferred assets are no longer considered part of your estate, which can reduce estate taxes for your heirs. It also offers protection from creditors and legal judgments, which makes it a powerful tool for safeguarding your estate’s future.

What Is a Special Needs Trust?

A special needs trust (SNT) is a type of trust designed to benefit someone who has disabilities without jeopardizing their eligibility for government assistance programs like Medicaid. When you set up a special needs trust, you provide valuable resources to improve your beneficiary’s quality of life while allowing them to maintain access to important public benefits.

SNTs hold assets that trustees can use to pay for certain life-enhancing expenses for disabled persons, such as education, recreation, counseling, or medical attention beyond what government programs cover. Importantly, assets in an SNT do not count as the beneficiary’s personal assets, which could disqualify them from receiving government aid. This is because eligibility for many government aid programs is limited to those with low income and few or no assets.

What Is a Living Trust?

A living or revocable trust is a legal document that allows you to place your assets under the management of a trustee for the benefit of your chosen beneficiaries. This arrangement comes into effect while you are still alive, hence the term “living.” One of the main benefits of a living trust is that it helps your estate avoid the lengthy and public process of probate after your death.

Tennessee living trust laws provide a framework for setting up and managing these trusts, both while you are alive and after your death. If you want to create a living trust, a lawyer can explain how to set up a living trust in Tennessee and officially transfer your assets into the trust. They can also help you choose a reliable trustee, meet relevant legal requirements, and create enduring protection for your estate.

Contact a Tennessee Trusts Attorney Today

If you’re considering setting up a trust, Evan Newman and Daniel, Daniel, & Newman are here to provide the guidance you need. Contact us today to arrange your free initial consultation with a Tennessee trusts lawyer and start creating a solid plan for the future.