Benefits of an Independent Professional TrusteeAugust 12, 2019
If you want to protect your assets, one of the best things you can do is set up a trust.
While some people think that only very wealthy people benefit from having a trust, the reality is that a trust offers many advantages to anyone with assets.
Trusts can help protect you if you become incapacitated, and eliminate the need (and costs) for probate. Trusts allow you to determine who will receive your assets and when. One important aspect of trusts is that assets are passed on to your beneficiaries quickly and privately, based on your wishes.
A Trust is often confused with a Will, but they are quite different.
|Requires probate through the court
|No probate required
|Probate records may be public
|Trusts are private
|No asset management if you’re
|Assets managed, even if
|No asset management for kids under 18
|Assets managed for all ages
|Costly and time-consuming to
Some of the most common trusts include:
- Revocable/Living Trust – you keep control of your assets throughout your lifetime, you plan for future beneficiaries, and you can change or dissolve the trust as long as you are alive.
- Irrevocable Trust – has many uses. It cannot be altered once you create it and you lose control of the assets you put in it once you establish it. However, it can protect and provide for beneficiaries after your death, and has various business and tax purposes.
- Charitable Remainder Trust – has tax benefits by providing a given amount of income to beneficiaries for a defined period of time with the remainder going to specified charities.
There are many advantages to creating a trust, and many things to consider before you do. We recommend consulting with a financial professional or lawyer before making a decision. This will help ensure all your circumstances and wishes are considered with your best interest is at the forefront of the process.