If you haven’t thought about how a trust helps you pass your desires and wealth on, you could be making a critical error in your estate planning. Especially for individuals with substantial assets, protecting wealth for future generations should at the top of your priority.
Benefits of a Trust
An effective trust is carefully drafted by a qualified attorney and takes into account your specific circumstances and as well as current laws. Not having proper documentation could result in you not reaping the benefiting from the benefits of a trust.
One of the most powerful and straightforward ways to use trust is by ensuring that your heirs have timely access to your wealth. When transferring assets through a will, your estate undergoes a procedure known as probate, conducted in state courts.
This probate process can carry some unforeseen negative consequences for the administration of your estate, such as:
- Delays – Probate proceedings can be lengthy, with some taking longer than others. Additionally, if you own property several states, probate may be required in each state.
- Costs – The fees included in probate can be quite substantial. The fees are hefty, even in basic cases, with no conflict between beneficiaries.
- Publicity – The probate process is public. A will becomes a public record once admitted to probate. This means that anyone who wishes to view it can do so. Such transparency can create unwanted scrutiny.
Control the Distribution of Your Assets
Trusts establish possible ways to transfer assets. Such as:
- Distributions for specific purposes – Ability to stipulate that the trustees shall make money available to children or grandchildren only for college tuition or maybe future health care expenses.
- Age-based terminations – The assets in a trust can also be distributed to heirs at periodic intervals. For example, 30% at the age of 40, 30% at the age of 50, and so on.
Building Your Legacy
The purpose of a trust is to help people realize a vision for their assets. With that being said, you should guide the discussion with your attorney with the goals you have for your estate. Overall, trusts can definitely help build your legacy the way you want it. Contact The Fetty Firm today at (214) 546-5746, for more information on our estate planning services.