It is important to live in the present and enjoy all of life’s precious moments. However, there comes a time when you need to plan for the future. Life could change in an instant, and you want to have a plan in place which will protect your family’s financial future.
You are never too young to plan out your estate. Estate planning is the process of arranging for the management and disbursement of your estate, while minimizing gift, estate and other taxes. A trust is one part of a well-crafted estate plan. While it is generally used to minimize estate taxes, it offers other benefits also.
A trust allows a third party — the trustee — to hold assets on behalf of a beneficiary. Trusts such as an irrevocable trust, may not be considered part of your taxable estate reducing the amount of taxes due upon death. Certain trusts can avoid probate, which means your beneficiaries may obtain access to assets faster than if those assets were transferred through a will. Additionally, there are other benefits to having a trust:
- You control your wealth. You specify the terms of your trust, including when and to whom distributions are made.
- Protect your legacy. A trust could protect your estate from creditors or other beneficiaries who may not have the skills or experience to manage what you leave behind.
- Keep information private. Probate is a public matter, but a trust may allow your assets to pass outside of probate and remain private. It could also potentially reduce the amount lost to taxes or other fees.
Trusts can be used not only for estate planning, but for present issues. A revocable trust can allow you to access your trust assets while you are able, allow a third party to manage your assets for your benefit if you are unable, and then pass the remaining assets in a manner and timing in which you direct after you pass.
The future is uncertain, but there are tools available which create financial stability for your family. A trust puts you in control. Trusts have many benefits, but you should speak with an attorney to create a trust which is right for you and your situation. The attorneys at Pacific Cascade Family Law are experts in guiding people through the complications and complexities of creating trusts. Helping you manage your assets as effectively as possible is the ultimate goal, and the team at Pacific Cascade Law intends to keep you informed, comfortable, and active throughout the entire process.