What is a trust?
When creating an Estate Plan, one should always consider whether or not a Trust is a useful way to help ensure that after your passing your assets are distributed in an efficient and cost-effective manner.
Generally speaking, Trusts are used to hold and distribute assets subject to a very specific set of instructions that you – as the creator of the Trust – establish.
To that end, there are many different types of Trusts, and each can be used to achieve different Estate Planning goals – such as avoiding the Probate process; tax mitigation; or asset protection.
In all events, trust planning can ensure that all your family members are taken care of regardless of any unforeseen circumstances that they may encounter after your death.
What can a trust do for you?
There are various types of Trusts, including Living, Revocable, and Irrevocable Trusts.
Here are some of the things that these different types of Trusts can do for you:
- A Trust can avoid the need for a Will, and allow your assets to pass to your beneficiaries without having to go through the Probate process.
- A Trust can help keep your personal, family and business affairs private as – unlike a Will – as it will not become part of the public Court record.
- A Trust can afford greater control over the inheritance you leave behind by including conditions and provisions upon which your beneficiaries will receive their inheritance – such as reaching a certain age, upon completion of certain educational requirements, after the passing of another, etc.
- A Trust can help manage your assets if you become sick or incapacitated as the appointed Trustee has the authority to make decisions that you would otherwise have to make if your assets were not held in Trust.
- A Trust can protect your assets from the “Medicaid spend down.”
- A Trust can protect your assets from being subject to certain types of Estate Tax.
Ultimately, a Trust is an important Estate Planning tool that can solve any number of problems, so it is to your advantage to find out what trust options could work best for your situation.
If you have questions regarding Trusts, contact Bashian P.C.
