Estate planning is a necessary part of financial security. You want your family to be financially stable when you pass and you certainly want your assets to go to the right people. This is why estate planning exists, particularly trusts. A trust is a financial arrangement that allows a trustee to hold assets for a beneficiary. A trust should be set up with the help of an estate-planning attorney. The Law Offices of Norman J. Homen can assist you in creating a trust so you can leave with the knowledge that your family is safe and financially secure. Here are just a few reasons why setting up a trust will give you and your family security and peace of mind.
- Avoid a Probate: If your assets are to be distributed through a will then a judge will enact a probate, which is the official proving of a will. This process is time consuming and costly for your beneficiaries which is why many people try to avoid it by creating a trust.
- Asset Protection: A trust gives you greater protection than a will against anyone who wishes to contest the distribution of assets. Contestation is possible, but it is difficult.
- Reduce Estate Taxes: An estate tax is a tax on your right to transfer property after your death. A trust can avoid or reduce estate taxes because properties included in the trust are not subject to the tax.
- Manage Assets: Many people set up trusts early in order to provide a system of management should they become incapacitated physically or mentally and can no longer make those kinds of decisions. A living trust allows you to choose your own trustee rather than have the courts appoint one for you posthumously.
- Privacy: Trusts are far more private than wills because they do not go through a probate, which is a process documented in public records. This means your assets and who they go to are kept entirely private.
- Control: Control is possibly the greatest advantage to setting up a trust. The original asset holder has complete control over how they wish their assets to be distributed.
- Who receives the assets
- How much each person receives
- In what increments or amounts assets are distributed to beneficiaries
- What assets can be used for (education, living, etc.)
Trusts allow you to make arrangements for your financial legacy, giving you peace of mind and your family financial security. The Law Offices of Norman J. Homen assists in the creation of trusts. We are dedicated to making sure you feel secure with your financial arrangement and confident in the fact that your assets and loved ones will be taken care of. Contact the Law Offices of Norman J. Homen today to schedule an appointment.
Courtesy of How Stuff Works: Money