Posted by The Sterling Law Group on January 6th - Trusts
Most of us have some vague notion about trust formation, but everyone says is better that have one than not having a trust. In this way we’re not really all that sure as to why having a trust is better. Let’s consider what some benefits of trust formation are. Let our experienced and knowledgeable trust attorneys help you with these issues today.
One of the primary benefits of having a trust for your property is that your estate avoids the probate process. You do not have to file the trust with the probate court and wait for its long processes before distributing the assets to your heirs. Creating a trust allows the generational transfer of assets to be essentially seamless and private. At the Sterling Law Group
As noted above, avoiding probate also means that the extent and distribution of your property remain private. A will filed with probate court is a public document available to any member of the public who knows how to request it. In contract, trust documents are private, accessible only to those involved in the estate. At Sterling Law Group we help people to create a Trust with the most skilled attorneys.
Because creating certain kinds of trusts removes the assets from the estate for tax purposes, it can greatly reduce the estate taxes that may be levied on the estate before the assets are distributed to the beneficiaries. When you create the trust, there may be gift taxes, subject to the gift tax or lifetime exclusions, but if all the correct rules are followed, the assets in the trust should be free of estate tax at your death.
Despite the long-standing confusion over the “rule against perpetuities,” trusts generally allow the grantor to extend control over the assets long after the grantor’s death. Particularly where the financial responsibility of one or more beneficiaries may be an issue, this long-term control capacity can be one of the most important benefits of creating a trust.
You have control over which beneficiaries receive trust assets or income. As well as the amounts they receive at any given time. You can designate guardians, establish special needs trusts, and accomplish means of reaching the goals that will allow you to continue to control the use of the trust assets long after your death. Also, you can add spendthrift provisions to protect trust assets from beneficiaries’ creditors.
Revocable or living trusts can be set up to be triggered by your disability or incapacity. In that event, the trustee can make distributions and manage your property. Of course, in a way that allows beneficiaries to continue living their lives while you recover. Creating this kind of trust allows you to make many of life’s difficult decisions at a time. Most of the time when you are healthy while it relieves your family of doing so under your illness.
If you are thinking about what some of the benefits of trust formation could be for your estate, contact us today for an initial consultation. We can help you determine your needs and goals in creating a trust.