As a Sturgis Estate Planning Lawyer, I often get asked about the benefits of setting up a trust. A trust is a legal document that allows you to specify how you want your assets to be managed and distributed after you pass away. While a will is also a legal document that can accomplish similar goals, a trust offers several advantages that make it a valuable tool in estate planning.
Here Are Five Advantages of Having a Trust:
- Avoiding Probate: Probate is the legal process of distributing a person’s assets after they pass away. It can be a lengthy and expensive process, with fees and other costs eating into the value of the estate. By setting up a trust, you can avoid probate altogether, as the trust becomes the legal owner of your assets. This can save your loved one’s time, money, and stress.
- Maintaining Privacy: Probate is a public process, which means that the details of your estate will be available for anyone to see. If you have a trust, the distribution of your assets can be carried out privately, without the need for public disclosure. This can be especially important if you want to protect your privacy or keep certain assets out of the public eye.
- Managing Assets for Minors or Incapacitated Individuals: If you have minor children or an incapacitated loved one, a trust can be a great way to ensure that their financial needs are met. You can specify in the trust how and when assets will be distributed to them, and you can even appoint a trusted individual to manage the assets on their behalf.
- Reducing Taxes: Depending on the size of your estate and the state in which you live, your assets may be subject to estate taxes. By setting up a trust, you may be able to reduce your tax burden by taking advantage of certain tax strategies. For example, you could set up a charitable trust to benefit a favorite charity, or you could set up a generation-skipping trust to pass assets down to your grandchildren rather than your children.
- Providing Flexibility: A trust can be a flexible tool, allowing you to specify exactly how you want your assets to be managed and distributed. You can specify conditions that must be met before assets are distributed, or you can give your trustee discretion to distribute assets as they see fit. This flexibility can be especially useful if your circumstances or the needs of your beneficiaries change over time.
Understand What Options Are Best for Your Estate Planning Needs
If you’re considering setting up a trust as part of your estate planning, it’s important to work with a knowledgeable Sturgis Estate Planning Lawyer who can help you understand your options and create a plan that meets your needs. At Dresser Law PLLC, we have extensive experience helping clients navigate the complexities of estate planning, and we can work with you to create a plan that protects your assets and ensures that your wishes are carried out. If you’re ready to take control of your estate planning, give us a call at (269) 689-8527 to schedule a consultation with John.