Should I Create a Trust?
A basic tool in any person's estate planning is the will, which usually addresses not only your property and assets but also dictates who will care for minor children if both parents pass away. Wills aren’t really the best and final option for every estate, especially given that probate must occur before any assets are distributed. A living trust is the best way to go.
Trusts sound like something that only wealthy people need. In reality, there are many benefits to creating a trust, even if you're not a multimillionaire.
One of the main advantages of having a trust is being able to bypass the time and cost of probate, which is a process of administering an estate that can easily cost thousands of dollars and take several months or even a year or more to resolve.
Another reason for establishing a trust before you die is that they are private. The probate process will make your will available to the public.
These are some of the other reasons why a trust may be a good fit for your estate planning needs:
- If you become unable to manage your affairs, trusts can be set up and funded so if you become incapacitated, your trustee can pay your bills rather than waiting for a court to establish a guardianship to care for you.
- Trusts are more customizable than a basic will, which can minimize potential conflict between heirs.
- A trust provides a way to reduce or avoid overall, estate taxes. If annual gifts are given to heirs, it reduces the overall amount of the estate which reduces the tax liability of the estate.
- Charitable trusts can be established that will transfer assets like money, a work of art, even a vacation home, to their favorite charity, tax-deductible.
- Another type of trust is a college fund trust. Funds that pay for all of the grandchildren’s college expenses. The remainder of the fund can be split evenly among the children.
Trusts serve a variety of purposes. Trusts can help you manage your property and assets, make sure they are distributed after your death according to your wishes, and save your family money, time, and paperwork.
Learn more about the many advantages of trusts here.
Kevin Miller is ready to assist you in creating a trust so you are not caught off guard in an uncertain time. It is important that you make estate planning a priority regardless of your age or amount of assets. Kevin Miller has extensive experience in living trusts, irrevocable trusts, and estate planning and will put your interests first. Contact us or call us at 405-443-5100 if you have questions. We are here to help.