Estate planning is something many people don't like to think about but requires advance preparation. Establishing a trust provides you with multiple benefits, including comprehensive asset protection. Holding assets for your heirs in a solid legal document is important to protecting your legacy. Learn how establishing a trust can benefit you.
Control of wealth
When creating your trust, you specify the precise details of your assets. This means you get to control when they are distributed and who receives them. A revocable trust can be set up so that you may access your assets during your lifetime, after which they will be distributed to the designated people or entities.
Elimination of probate
Wills, with certain exceptions, must go through probate. This involves court proceedings that distribute your assets. Probate can be a lengthy and expensive process. A living trust avoids the need for probate altogether. This means a faster and cheaper allocation of assets.
Saved money and reduced taxes
You can save on estate and income taxes when you establish a trust. A trust can also save money for your estate due to no court costs for probate. Trusts are likely to stand stronger when contested. Married couples can also enjoy additional savings with joint living trusts.
Protection of assets from creditors
Your assets can be shielded from involuntary transfers by creditors when you invest in an asset-protecting trust. When you establish a trust that contains protective provisions, you can have peace of mind. This type of trust is irrevocable, meaning it cannot be amended or terminated. A trust can also help against your heirs' creditors or beneficiaries who are inept at money management.
A trust offers your assets an extra layer of privacy. While wills are public record, meaning all transactions are public, trusts are not made public. When you establish a trust, you are ensuring your estate is distributed in private.
Safeguards when incapacitated
If you become ill or incapacitated, your trustee will take responsibility for managing your assets according to your benefit. Without a trust, incapacity could lead to your family going to court to declare you disabled. The process is simpler and more private with a trust.
Planning how your estate will be handled once you're gone is not only important to your heirs but for your peace of mind as well. Establishing a trust gives you confidence that your estate is distributed according to your precise terms. Consult an estate planning attorney to learn more.