You want to build an estate plan that helps you protect your assets and your heirs. You have been planning for some time, but one thing you haven’t yet created is a trust. Is it worth it?
There are many benefits that trusts provide. Among them is the fact that many are flexible and that there are trusts for almost any situation.
Some of the benefits that you should know about include:
- Being able to place conditions on how your assets are distributed following your death
- Being able to protect your assets against lawsuits and creditors
- Being able to avoid probate court
- Reducing gift taxes
- Reducing estate taxes
Did you know that going through probate can cost as much as 7% of your estate? To protect your assets, a trust can be used to distribute your assets instead. Without a trust or will, the distribution of your assets may be delayed and can cost more than if you’d put these protections in place.
When you establish a trust, you can choose a successor trustee for it. That person manages the trust following your death and is also able to manage it if you are unable to take care of it yourself.
Of the kinds of trusts you can choose, irrevocable are often seen to have the most benefits. They are the most protective of your assets and totally take items out of your possession. This is something to consider if you want to protect your assets and guarantee that your trust’s assets won’t still need to go through probate due to remaining in your name.