What was the last time you reviewed your will estate planning? If it’s been a while, you must update it from a will and trust attorney based on the recent changes to the law that may impact your tax and retirement plans.
Understanding Trusts In Estate Planning
Estate planning can be beneficial in achieving some goals like naming an institution or individual as your representative to settle the estate matters in the event of your death, transfer of property to the organization or individuals in a tax-efficient way, documenting the explicit care you want in the case of your illness or incapacitation, assessing and managing tax exposure and more.
If you have never done your estate planning, then you will need the best estate planning law firm to meet your first step of drawing up the will and trust along with additional legal formalities and documentation.
There are several ways in which a trust can help you achieve your legacy and estate planning goals. Some of the ways are listed below.
- Help You Avoid Probate:
It can take about months or a year and more for your probate process to complete. Moreover, the process can be expensive too. About 5% of estate value can be charged as an attorney and court fees in some cases. However, a trust can settle down your estate planning or dispute in a time-saving and cost-efficient manner.
- Enables Privacy And Confidentiality:
You must know that the probate process is all about the public record. This implies that your will, estate plans, and other financial and business-related details become an aspect of the public record, too, just after the estate gets represented for probate.
However, in a trust, you can enjoy complete privacy and confidentiality where only the trustees and beneficiaries can get involved along with the attorney.
- Beneficiary Protection:
With the help of a trust, beneficiaries can enjoy protection from creditors, lawsuits, or divorce. If you plan an irrevocable trust, the future creditor or claimant for alimony after divorce cannot get a judgment in their favor for the assets held in that trust.
It also helps protect the interest of minor children and children with special needs by setting up the guidelines for the distribution of an estate when needed.
- Helps Children With Special Needs:
Trusts such as the special needs trust ensure to provide health care facilities and personal requirements of any minor child or individual with special needs. The eligibility for medicare benefits is retained and maintained for the children or adults with special needs through this special needs trust.
- Enhances & Maximizes Flexibility:
As you will be the one to dictate and describe the terms of the trust, you can put limitations on how the assets are to be managed. Suppose you’re not confident and concerned that your beneficiary may not manage the assets efficiently.
- In that case, you can choose an independent trustee and appoint them to help with smart and wise decisions on their behalf. In addition, you can put restrictions on the usage of your assets.
- For instance, the trust could set out that the assets can only be utilized to support a beneficiary’s essential lifestyle requirements, such as the purchase of a car or home or the payment of medical bill expenses. However, this support may not be directly distributed to the beneficiary.
- Preserving The Family Wealth:
In several cases, divorces and remarriages can end up with your assets intended to stay in your family, leaving the family. Your hard-earned or inherited family wealth may get drowned and distributed outside your family, leaving your heirs with abandoned or limited wealth. Here, trusts ensure to preserve your estate for your grandkids and even great-grandkids.
- Promoting Family Values:
A trust is considered one of the most effective tools to pass down the family values from one generation to another in terms of education, land conservation, homeownership, religious beliefs, community service, and more. For instance, if your family considers charitable giving as one of the essential family values, the trust could lay down some clauses. It may state that the heirs must contribute to charity by donating a fixed percentage of their overall assets every year through a charitable organization of their choice.
- Lowers The Family Conflict:
The process to challenge a will is an easy process. However, the steps to challenge a trust can be difficult and expensive. If you have a trust that articulates your desire and wishes explicitly for the beneficiaries and heirs significantly reduces the chances of misunderstanding. This means that, most likely, everyone will appreciate and respect your wishes for the trust’s planning.
So, if you want to leave behind your legacy and protect your loved ones with the family wealth, values without any future conflict, then start looking for the best estate planning services. Get in contact with the best law attorney for estate planning and ensure to achieve these goals efficiently.