While Trusts aren’t for everyone, there are some potential benefits and most likely, you’ve heard of a few. Certain types of trusts can minimize estate taxes for example, because the assets held in the trust are legally titled to the trust and not considered part of your estate. Trusts can also help your loved ones avoid the expense and time of probate, since the assets are passed directly through the trust and don’t require court supervision.
But these aren’t the only advantages to having a Trust. Other important, but not so well-known benefits include:
Keeping the details of your estate private.
The probate process is public record, meaning anyone has access to the details of your estate. This allows con artists and other not-so-savory individuals to target your loved ones (and your assets) when they’re at their most vulnerable. By passing your assets through a Trust, you avoid probate and protect your loved ones’ privacy.
Giving you greater control over your assets.
Depending on the type of Trust you create, the terms and conditions you set can live on long after you’ve passed. That means that you can stipulate how the money should be spent or at what intervals a beneficiary should receive a distribution. If you want to encourage your grandchildren to go to college for example, or help them start a business, you can offer these as conditions for a different distribution option within your Trust.
Protecting your estate from bad decisions, unfortunate events and family squabbles.
Because a Trust allows you to lay out – in detail – how your estate will be distributed, you can use it to ensure your assets go where you want them to go. If you have an heir that isn’t the most financially responsible for instance, you can limit the amount and timing of their distributions to ensure they don’t blow their entire inheritance in the first two weeks. Worried that children from a previous marriage might not get their fair share? A Trust could remedy that for you. Concerned that a current son-in-law might one day be an ex son-in-law? Your trust can keep him from walking away with part of your estate.
So, is a Trust right for you?
That depends. Your plan should be as unique as the estate it protects and a good estate planning attorney can help you choose the components that are right for you. Spiegel Law, PLLC can give you that kind of experience and expertise, no matter how simple or complex your estate might be.
Let us help you protect your assets and your loved ones. Call us today!