A trust is a legal document that helps protect your assets. You can have a trust and a will work together for extra financial security or to make sure your beneficiaries do get what they're owed.
A living trust is a useful tool when you are creating an estate plan. It is imperative to know that these trusts aren't appropriate for everyone in every situation. If you are considering a living trust, you should think carefully about it because there are some instances in which this option might not be worth the time or effort.
There are many kinds of trusts that you could opt for to create for your beneficiaries. Each type has its own benefits to consider. For example, a credit-shelter trust helps you give your estate to your spouse tax-free while also stating who you want to receive the trust. When your spouse passes away, you can even determine who will receive the remaining principal tax-free.
A blind trust is a certain type of legal vehicle that is used when the person who owns the assets shouldn't be able to know how the assets or being managed or have a hand in the management of the assets. Blind trusts are not something you'd use in common financial and estate management situations, but they can be a valuable tool when ethical or legal restrictions make it difficult to maintain ties with your own wealth or businesses.
It's the beginning of a new year, which means everyone is rushing to the gym or the health food store to try to get a head start on goals. In many cases, those goals will be abandoned by this time in February, but you can set some long-term financial and estate planning goals that are easier to keep -- especially if you cement them now with the help of an estate law professional.
If you want the benefits of a trust for your heirs and yourself but you feel like you don't have enough assets to warrant creating such a legal arrangement, then you might want to consider the merits of life insurance. Did you know that you can fund a trust with a life insurance policy?
In the past, we've talked a lot about the benefits of trusts, which, when properly managed, can help you administrate your property both now and after you are gone. The benefits of a trust don't start accumulating until you move property into the trust, though, so simply working with a lawyer to create a legal trust document isn't enough. You should always talk about how and when you will move assets into your trust when you work with a professional to create it.
Estate planning is one of the most important things you can do. Not only will this give you peace of mind right now, but it will go a long way in helping your family live a better life once you pass on. Is there anything more important than that?
As you create an estate plan, you will be faced with many questions. Here is one of the most important: What are the benefits of creating a trust?
As you go through the estate planning process, you will have questions and concerns. It is important to address each one, ensuring that you don't run into a situation that drags down you and/or your family in the future.