Benefits of a Trust

Often times when estate planning, you wonder what exactly needs to be done. But as in every case of the law, every situation is different. There is no one size fits all. 

One of the options available to those planning their estate matters would be setting up a trust. What is a trust and what are the benefits of a trust? For more information, keep reading.  

A Trust is defined as: a fiduciary relationship in which a trustor gives another party, known as the trustee, the right to hold title to property or assets for the benefit . The trustee manages the assets inside of the trust.

What are the benefits of a trust and why should one consider forming a trust?

• Estate planning: A trust may help you manage and distribute your assets according to your wishes after you pass away.
• Avoidance of probate: Probate is a legal process that can be time-consuming and expensive. A trust may help avoid probate and ensure that your assets are distributed according to your wishes. 
• Privacy: The details of a trust are not public information, unlike a will, which becomes part of the public record after probate.
•  Asset protection: A trust may protect your assets from creditors and from being seized in a lawsuit.
• Control over assets: With a trust, you may specify how and when assets are to be distributed, rather than leaving it up to the courts.
• Tax benefits: Depending on the type of trust and the circumstances, a trust may offer tax benefits, such as avoiding or reducing estate taxes.
• Special needs planning: A trust may provide for a loved one with special needs without disrupting their eligibility for government benefits.

It's important to consider the specific goals and circumstances of your estate when deciding if a trust is right for you, and to work with an attorney in solidifying your goals. If you need more information regarding the benefits of a trust or would like to set up a consultation to discuss your estate planning needs, give us a call.