A trust is a legal arrangement in which assets are held by a trustee for the benefit of one or more beneficiaries. Trusts serve a range of purposes in estate planning, from avoiding the time and expense of probate to providing for the long-term management of assets for beneficiaries who are not yet ready to receive an inheritance outright. At Tollison & Webb P.A., we draft trusts for individuals and families throughout North Mississippi, advising clients on whether a trust makes sense for their situation and structuring the arrangement to accomplish their specific goals.

Types of Trusts We Handle

Revocable Living Trust

A revocable living trust is the most common trust used in estate planning. It is created during your lifetime, funded with assets you transfer into it, and managed by you as the initial trustee. Because you retain control, you can amend or revoke it at any time while you have capacity. At your death, the assets in the trust pass directly to your named beneficiaries without going through probate, which saves time and expense for your family. A revocable living trust also provides for seamless management of your assets if you become incapacitated, since a successor trustee can step in without the need for a court-appointed conservator.

A revocable living trust does not provide asset protection from creditors during your lifetime since you retain control over the assets. For most clients pursuing probate avoidance and incapacity planning, however, it is the right tool.

Testamentary Trust

A testamentary trust is created within a will and takes effect at your death. Unlike a revocable living trust, a testamentary trust does not avoid probate since it is established through the will itself. However, it is useful when you want assets to be managed for a beneficiary over time rather than distributed outright at your death, such as providing for minor children or a beneficiary with special needs. The trustee manages and distributes assets according to the terms you specify in the will.

Special Needs Trust

A special needs trust is designed to provide for a beneficiary with a disability without disqualifying them from means-tested government benefits such as Medicaid or Supplemental Security Income. Assets held in a properly structured special needs trust are not counted as the beneficiary’s resources for purposes of benefit eligibility. If you have a family member with a disability who depends on government benefits, a special needs trust is an important planning tool that ensures they are provided for without jeopardizing the benefits they rely on.

Trusts for Minor Children

Leaving assets directly to a minor child is problematic because minors cannot legally manage property. Without a trust or court-appointed conservatorship, assets left to a minor may require court supervision until the child reaches adulthood, at which point they receive the full inheritance at once regardless of their maturity. A trust for minor children allows you to specify when and how distributions are made, such as at specific ages or for specific purposes like education, and names a trustee to manage the assets responsibly in the meantime.

Funding a Trust

A trust that is not funded with assets does not accomplish its purpose. Funding a trust means transferring ownership of assets into the trust, which requires retitling real estate, changing account ownership, and updating beneficiary designations on certain assets. This step is as important as drafting the trust document itself, and it is one of the most commonly overlooked aspects of trust-based estate planning. We advise clients on the funding process and help ensure their trust is properly funded to accomplish what they intend.

Trustee Selection

Choosing the right trustee is one of the most important decisions in creating a trust. The trustee has a fiduciary duty to manage trust assets in the best interests of the beneficiaries, which requires both trustworthiness and the organizational capacity to handle financial management, recordkeeping, and distributions. For most clients with straightforward estates, a trusted family member or close friend serves as successor trustee. We advise clients on what the trustee role entails and what qualities to look for when making this selection.

Frequently Asked Questions

Do I need a trust or is a will enough?

For most people with straightforward estates, a well-drafted will is sufficient. A trust becomes more valuable when probate avoidance is a priority, when you have beneficiaries who need assets managed over time, when you have a family member with special needs, or when your estate has characteristics that make court supervision of asset distribution undesirable. We give clients an honest assessment of whether a trust is worth the additional cost given their specific situation.

Does a revocable living trust protect assets from creditors?

No. Because you retain control over a revocable living trust during your lifetime, the assets in it are still considered yours for creditor purposes. A revocable living trust provides probate avoidance and incapacity planning benefits but does not shield assets from your creditors. Irrevocable trusts can provide creditor protection in some circumstances, but they involve giving up control over the assets, which is a significant tradeoff that most clients pursuing basic estate planning are not looking for.

What happens to a revocable living trust when I die?

At your death, a revocable living trust becomes irrevocable. The successor trustee you named takes over management of the trust assets and distributes them to your named beneficiaries according to the terms of the trust document, without going through probate. The process is typically faster and less expensive than probate administration and does not become part of the public record the way a probated will does.

Do I still need a will if I have a revocable living trust?

Yes. Even with a revocable living trust, you should have a pour-over will that captures any assets not transferred into the trust during your lifetime and directs them into the trust at your death. This ensures that assets you forgot to fund into the trust or acquired after creating it are still governed by your overall estate plan rather than passing under Mississippi’s intestacy laws.

How much does it cost to set up a trust in Mississippi?

The cost depends on the type and complexity of the trust. A revocable living trust is more involved than a simple will and involves both the drafting of the trust document and the funding process. We are transparent about fees from the outset and advise clients on whether the benefits of a trust justify the cost given their specific situation.

Contact an Estate Planning Attorney in North Mississippi

If you are considering a trust as part of your estate plan, contact Tollison & Webb P.A. to schedule a consultation. We help individuals and families throughout North Mississippi structure their estate plans to accomplish their goals.

Call (662) 234-7070 or contact us online.