Establishing A Trust
Estate Planning Services – Establishing A Trust
What Is A Trust?
A trust is a legal arrangement in which one party, the grantor, transfers assets to another party, the trustee, who manages those assets for the benefit of a third party, the beneficiary.
Why would you need a trust?
Establishing a trust can be useful when estate planning, for asset protection, for charitable giving, and more. A trust provides a flexible and efficient way to manage and distribute assets while allowing for specific instructions and conditions set by the grantor. Here are some reasons having a trust can be beneficial:
- Avoiding probate – a revocable living trust can help assets pass directly to beneficiaries, saving time, money, and providing more privacy for your family.
- Controling distribution – the grantor gets to control how and when assets are distributed to beneficiaries. Control without ownership also allows for protection from divorce, creditors, certain taxes, and more. A skilled estate planning attorney can walk you through best practices and good strategies for asset protection trusts can provide.
- Tax planning – certain trusts are designed to take advantage of tax benefits and can reduce income taxes, gift taxes, estate taxes and more.
- Asset preservation – a trust again gives the grantor control so can designate a trustee to manage and distribute assets on behalf of minor children until they reach a certain age, ensuring their financial well-being. They also can allow for preservation of family wealth over generations, protecting aganist the dissipation of assets.
These are just a few of many reasons establishing a trust can be a beneficial route in your estate planning needs. If you have a complex estate, blended family, businesses, desire for charitable giving after your passing, or even simply have privacy concerns (a trust, unlike a will that is a public document, provides a higher level of privacy and terms are not publically disclosed), then a trust could be a good solution for you.
Contact Carmen today for a consultation on your estate planning service needs and get started on your trust today.
Types of Trusts
There are many types of trusts used in estate planning. Each serves a specific purpose to meet particular needs. Here are some common types of trusts:
- Revocable Living Trust
- Irrevocable Trust
- Testamentary Trust
- Charitable Remainder Trust
- Charitable Lead Trust
- Special Needs Trust
- Bypass Trust
- Qualified Personal Residence Trust
- Grantor Retained Annuity Trust
- Dynasty Trust
Contact Liriano Law Firm with any questions you may have. We are ready to fight for you.
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