Why Should I Create a Trust?
A trust is one important tool that should be used in estate planning.
Planning for your future by creating an estate plan is strongly recommended. Such planning can provide peace of mind for both you and your loved ones and ensure that those you care about are provided for. One important estate planning tool that should not be overlooked is a trust. Consider the following about the basics of a trust and the advantages of creating a trust.
What is a Trust?
A trust refers to a fiduciary relationship where one party, the trustee, holds assets for the benefit of the trust’s beneficiaries at the request and direction of the person creating the trust, known as the trustor or grantor. Assets within the trust must be distributed per the wishes of the trustor. There are multiple types of trusts.
The Advantages of a Trust
There are many advantages to creating a trust. You should work with a professional to determine what type of trust makes the most sense for you and will have the most advantages for you. Some of the benefits of creating a trust include:
- Avoiding the probate process. One of the biggest advantages of a trust is that assets held in a trust do not have to go through probate. This can mean saved time and money for the executor of the estate.
- Mitigating taxes. Some trusts can be used to reduce estate taxes, which can increase the amount of money that beneficiaries are able to inherit after a decedent’s death.
- Protecting assets from disputes. Assets that are held in a trust have more protection than those that are merely listed in a will. Trusts are very difficult to contest and keeping assets in a trust can minimize the risk of family feuds during the process of settling an estate.
- Enhancing your privacy. It is important to remember that probate is a public process. This means that a public record will be created. Assets that are kept in a trust, and the process of distributing assets in a trust, on the other hand, are This means that no one else will know your affairs outside of those immediately impacted by the trust.
- More control when dividing property and assets. Finally, creating a trust can offer more control when dividing property and assets. For example, rather than just leaving your home to your beneficiaries in your will, through a trust you can specify exactly who has the right to use the home and when, under what conditions the property can be sold, how proceeds should be distributed, and more.
Call The Cordoba Law Firm, PLLC to Learn More About Trusts Today
A trust is just one important estate planning tool that you should use when thinking about the future—a will, advanced directive, and power of attorney are others. At the office of the Cordoba Law Firm, PLLC, our experienced estate planning lawyers can help you to understand more about the different types of trusts and create a trust that works for you. Reach out to us today by phone or online to get started.