Are you not sure if you need a trust, or you don’t know what the benefits of creating one are? It’s important to understand the advantages these can provide and to know when you need to establish one.
What Is a Trust?
First, it’s essential to understand what a trust is. This is a legal arrangement where a trustee holds and manages assets for another person or persons – the beneficiaries. The assets can include property, investments, and other values. The trustee will manage the assets according to the terms of the trust.
One of the perks of a trust is that it is not subject to probate court. It can also be used to protect assets from creditors, lawsuits, and other risks.
Why You Should Establish a Trust
Trusts can be created for a variety of reasons. Some of the most common include:
- Estate Planning: A trust lets you transfer assets to beneficiaries in a controlled way, without having to go through probate court. This assures you that your assets and property will be distributed according to your wishes and will not be determined by a judge.
- Asset Protection: A trust protects your assets for your beneficiaries. This means if your beneficiaries have credit issues, are going through a divorce, are minors, or have other issues that could jeopardize their ability to inherit property, your assets are protected.
- Tax Planning: A trust can also be used for tax planning purposes. A trust – specifically a grantor trust — lets you transfer assets out of your estate to be strategic about your estate tax obligations. A charitable trust can help reduce your income tax liability.
- Special Needs Planning: A trust can help those who need special care. If someone needs long-term care or is disabled, a trust can give them access to their assets while also making sure they still get disability or other government benefits.
- Private Documents: Unlike a will, which is subject to probate, a trust is private. This means people don’t have access to the document and strangers won’t know your family’s business or the value of your asses.
Why You Need an Attorney
When establishing a trust, it’s essential to hire an estate planning attorney. Trying to do this on your own – or through a program you bought online, or may have found for free – can lead you open to mistakes. You need an attorney working for you who knows the ins and outs of the legal system and knows what needs to go into your trust, what documents need to be filed, who needs to be made aware of the trust, and more. An attorney is also available to help you change the trust as needed. They can also answer questions from your beneficiaries and help them manage their assets.
Why Hire Us
Are you questioning whether you need a trust, or when to create one — or if you need a lawyer to help? Resist the urge to create one online on your own. This might seem like a great deal, but doing it alone without the help of an attorney can leave you open to a lot of issues that can impact you and your beneficiaries. If you’re considering setting up a trust, get help from the experts at Johnstone Adams LLC.
Ranked in the 2023 U.S. News – Best Lawyers® “Best Law Firms” list regionally in 12 practice areas, we have experts in many areas of law to give our clients top-notch representation. In business for more than a century, our firm can mix its experience with the ability to evolve with the changing times.
To get started, contact us at 844-682-7682 or info@johnstoneadams.com.