The Basics of Setting Up a Trust for Estate Planning
A trust is a relationship in which one person’s assets are held inside for the intention of passing on to specific beneficiaries. One of the primary reasons that people choose to use a trust is because the assets no longer belong to a grantor after they have been transferred into the trust. You can also put provisions in place that specify how these assets are to be distributed. This is strongly recommended for those parents who have spendthrift children.
Giving you a layer of control and an additional layer of privacy are primary benefits of using a trust. Setting up a trust also affords other benefits including; tax breaks, asset protection, and the avoidance of going through probate court after a grantor passes away. There are several different types of trusts available and consulting with a knowledgeable estate planning attorney can give you a better idea of which ones may be most appropriate for you. These include:
- Spendthrift trust
- Revocable living trust
- Irrevocable trust
- Education trust
- Gift trust
- Special needs trust
- Charitable trust
Estate planning and divorce are two of the primary reasons in which you may wish to consider setting up a trust. Doing your homework in advance and determining the purposes you would like to achieve by setting up a trust is extremely beneficial. Identifying the right estate planning lawyer to assist you with this process is strongly recommended.