Imagine wanting to leave your assets to your beneficiaries. You want to leave them a home, an inheritance including funds and many other items. You also want to make sure those funds and assets are protected against taxation and distribution to the wrong individuals.
You can take steps to protect your estate. You are called a trustor when you decide that a trust is the right way to do that. A trustor is a person who gives a trustee the right to hold the title to their assets for a beneficiary through a trust. The trust is established to provide protection to the assets and to make sure they're distributed according to your wishes after you pass away.
Trusts are designed under different terms, depending on what you want to do with them. The trust can determine how your money is managed now, or it might be used to distribute your money after death. It all depends on the type of trust you decide to use.
What are the major benefits of using trusts?
Trusts have a few major benefits including helping you avoid taxes and protecting your assets from creditors. You can also dictate the terms of distribution for beneficiaries, giving you control of when they receive assets and how much they can receive at one time.
There are a few types of trusts, but most will be living trusts or testamentary trusts. Living trusts are written to protect your assets while you're alive, so they can continue to benefit you. Testamentary trusts, which are also called will trusts, determine how assets will be distributed following your death.
A trust can be the right option for you if you want to protect your assets. Discuss your options, so you know if this is the solution to your concerns.