While trust funds, or trusts, may seem the domain of millionaires, it is beneficial for people at all economic levels to create a trust. If you plan to leave money to your minor children a trust has to be an integral part of the estate plan. By having a trust in place, money and assets are set aside and available to your children upon reaching a pre-determined age. Having a trust, managed by a trustee, allows for management of your money, property and assets, and makes sure that they’re distributed after your death — according to your wishes. This will save your family money, time and paperwork.
Benefits of setting up trusts include avoiding taxes, avoiding probate, protecting your estate (as well as the estate of beneficiary or beneficiaries), providing funds for educational purposes, and benefits for charities and institutions.
Trusts are flexible, varied and complex. Each type has advantages and disadvantages depending on your wishes for the future. What kind of trust will work for you? A credit-shelter trust? A generation-skipping trust? A qualified personal residence trust? A irrevocable life insurance trust? A qualified terminable interest property trust?
Before you set up a trust, it is imperative to thoroughly discuss the specifications of the considered trust with your estate-planning attorney.
When it comes to having others use your assets to care for you when you are unable to make decisions, or when it comes to taking care of the ones you love, creating a trust is of utmost importance in meeting your various estate planning goals. .
As an experienced attorney in estate planning, allow Jim Ward to assist you in determining which trusts are right for you and your family. Call us today for a free assessment, 1-800-JIM-WARD.