When Should I Establish a Trust?
Trusts are legal documents that spell out how and when your assets are transferred to people or charitable organizations. There are numerous types of trusts that can be established for different purposes.
Difference between a will and a trust
If you have a will, you have already provided instructions on how to distribute your assets after your death. A trust allows you to transfer assets before or after you die to an account that you, or someone you appoint, manage. Assets held in a trust do not need to go through the probate process, which means the assets become available to beneficiaries faster.
The most common reasons for establishing a trust
When people refer to estate planning, it usually includes working with an attorney to shape how assets will be protected and distributed. Establishing a trust does require time and expense beyond what’s needed to create a will. There are many reasons that it can be worthwhile:
- Avoiding the probate process for assets included in the trust, which ensures privacy as well as the speed with which assets are available to beneficiaries
- A trust can provide more flexibility in how and when assets are distributed
- A trust won’t be contested as part of the probate process
- Certain types of trusts can reduce various types of taxes
Different types of trusts for different purposes
There are two main categories of trusts – revocable and irrevocable – which determine various aspects of the trusts, and within those categories there are various types of trusts that are designed for different purposes. Some examples include charitable trusts, education trusts, special needs trusts, and business trusts.
Contact an experienced attorney to help you establish a trust
An experienced Shelbourne Law attorney will listen to what’s important to you and help you create a trust with provisions designed to meet your wishes for how to protect and distribute your assets. You can call us at 843-871-2210 to get started or complete the contact form on our website and we will contact you.
