Are you familiar with trusts and what they can offer your family and loved ones? Unfortunately, many people only consider a will and don’t spend time on asset management with specific timelines and distribution instructions. We’re here to help with everything you need to know about trusts.
What is a Trust?
A trust is an arrangement through the legal system that creates a fiduciary responsibility where a trustee manages an individual’s assets to benefit the individual’s beneficiaries. In other words, a trust is an agreement that spells out how a person wants their assets distributed, when, and to whom.
What are the Benefits of a Trust?
There are different types of trusts, but they share many of the same benefits. These include:
- Avoiding probate so beneficiaries can receive assets without waiting for the court process, and fees
- Potential to avoid taxes if set up as an irrevocable trust
- Wealth control on your terms to designate beneficiaries and timelines for your asset distribution
- Protecting your heirs from creditors
- Protecting your estate from mismanagement
- Privacy for your records instead of public record as with probate
How a Lawyer Can Help with Trust Administration
A trust requires an administrator. It’s tempting to assign a family member or close friend, however, it’s advisable to find an objective third party. In most cases, an attorney is the best choice to help the trustee implement the plan.
If trusts still seem confusing or you’re unsure where to turn for more information, go to a reliable source. Contact the legal team at McCutchen McLean, LLC to find out more about trusts and how they can help you plan for the future of your estate.