Most people recognize that they need a will to ensure their property goes to who they choose, rather than who the government selects. However, many people do not understand how important trusts can be to a good estate plan.
Talk to an experienced trust lawyer about when to consider setting up a trust. You might be surprised to learn that trusts can be a cost-effective estate planning tool for most families.
A trust is a legal entity that holds assets in its name. A grantor creates and funds the trust by transferring assets into it. When the grantor dies, assets in the trust do not go through probate because they are no longer owned by the grantor, but by the trust.
A trust allows the grantor to manage assets while alive and in good health, and ensures the assets will be handled in accordance with their wishes should they become incapacitated or die. Many trusts are structured so their assets are distributed to the grantor’s heirs when they die, but some continue and a beneficiary can access their share during their lifetime.
Multiple kinds of trusts meet different needs. Trusts can be designed to allow the grantor to benefit from the property in the trust during their lifetime. Other trusts can be arranged to protect assets from the grantor’s creditors and even the creditors of beneficiaries.
Trusts allow a grantor to determine how a beneficiary will receive property. For example, if a grantor is concerned that a beneficiary may squander their inheritance, they can design a trust to allocate smaller sums over time.
Trusts can be valuable tools to divert property from the value of the estate and reduce taxes. Designing a trust for estate tax avoidance requires knowledge and skill, so it is important to work with an experienced attorney. Understanding the different types of trusts and their purposes is important in considering when to establish a trust.
One of the most valuable features of a trust is that a trustee can manage property if the grantor becomes incapacitated. This saves the grantor’s loved ones from the stress and inconvenience of trying to manage their affairs with a power of attorney.
There are many things to consider when deciding when to set up a trust. However, because no one knows when misfortune will strike, establishing a trust while healthy as part of a comprehensive estate plan is a prudent decision.
Trusts can be helpful when a family faces a challenging diagnosis. Putting property into a trust can make it available to a grantor’s heirs immediately upon death and spare family members the expense and delay of probate.
When heirs expect a significant inheritance, a trust can help to manage their expectations. Whatever a grantor’s specific concerns and wishes, a Coral Gables attorney could design a trust to accomplish their goals.
Anyone with substantial assets can benefit from including a trust in their estate plan. If you are wondering when to consider setting up a trust, “now” is the answer in most cases. Speak with an experienced lawyer about your goals, and they could design a trust that works for you. Reach out today to get started.
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We will meet with you to discuss your next options and lay out a plan.
Our team guides you throughout the process so you feel confident about your choices.
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