Benefits of Having a Trust
When it comes time to create an estate plan, one option to consider is a trust. A trust is a legal arrangement that allows you to appoint someone to handle your assets for the benefit of your beneficiaries. Many benefits exist to having a trust.
One benefit of utilizing a trust in your estate plan is the avoidance of probate. The probate process to settle an estate can be time-consuming and expensive. It is also a public process, which may provide little privacy. By creating and placing your assets in a trust, the assets in the trust are not subject to probate. This may ensure your assets are distributed to your beneficiaries in an efficient, cost-effective, private manner.
Another advantage to a trust is the level of control you retain over the distribution of your assets, even after you pass away. This is particularly useful if you have very specific wishes for how your assets should be used, when assets can be distributed or if you want to ensure that certain beneficiaries receive different shares of your property.
If you have beneficiaries who are minors, a trust can provide a unique level of protection for their inheritance. By setting up a trust for a minor, the assets you leave to the minor are managed by a trustee of your choosing until the minor reaches an age at which you feel comfortable that they can manage their inherited assets on their own. You may also decide to hold the beneficiary’s share in trust for their lifetime.
Additionally, some trusts come with certain tax benefits. Depending on your circumstances, a trust can help you minimize your estate tax liability. An estate planning attorney can advise you on the best strategies to achieve your trust and tax planning goals.
Overall, setting up a trust comes with many benefits. If you are interested in learning more about how a trust can benefit you and your loved ones, contact Brown Law Firm, LLC at (303) 339-3750.