While it is true that no two families are the same, it is also true that no two families have the same type of estate planning requirements. Fortunately, many concerns can be adequately addressed by creating proper trust provisions. While there are many different ways to create an adequate estate plan, trusts offer some substantial advantages in comparison to other tools. After the trust’s creator dies, the trust carries on indefinitely. The following will review some of the benefits that people realize through incorporating trusts into their estate plans.
All property that is placed in an irrevocable trust avoids the probate process, which can mean substantial saving in regards to time and expense for individuals. As a result, the use of an irrevocable trust can help to save a substantial amount of time as well as energy that a person would otherwise be required to invest in the probate process.
Any property that passes through a probate estate becomes part of the public record. A trust is capable of keeping the entire transfer process private, which means that these trusts can play an important role in the lives of families who want to maintain a level of privacy.
Avoid Multiple Estate Administration
If an individual passes away while owning pieces of property in several different states, it is likely that each state will require a separate probate process. If ownership of the property is placed in a trust, however, the number of states with an interest in the property will decrease substantially. As a result, irrevocable trusts used in this way can save a substantial amount of time and energy.
Receive Property From Another Source
If a person decides, any property that is not in a trust is capable of being placed into the trust following the individual’s death. To do so, a will requires specific language, which is why it is best to obtain the assistance of an experienced estate planning attorney to obtain this goal.
Distribute Proceeds According to Your Wishes
A trust can be divided into separate trusts for each beneficiary and then unequally distributed if a person requires. There are many other ways in which a trust can be distributed to match a person’s desires. For this reason, trusts are able to achieve some unique estate planning goals that other types of document cannot.
Creditor Protection for Heirs
There is not any asset protection provided by a revocable trust during the lifetime of that trust’s creator. To provide creditor protection, a beneficiary might not have unrestricted rights to withdraw the principal of the trust, but does have the right to income and additional support required for maintenance and support.
Speak with an Experienced Estate Planning Lawyer
If you have questions or concerns about how to fully achieve all of your estate planning goals, you should not hesitate to speak with an experienced attorney. Contact attorney Jim A Lyon today to schedule an initial free case evaluation.