Why Everyone Can Benefit from Creating a Trust - Boyum Law
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Why Everyone Can Benefit from Creating a Trust

Why Everyone Can Benefit from Creating a Trust

Often times, people think trusts are only for the wealthy. In reality, creating a trust benefits anyone who plans to pass assets down to their heirs. Here’s what you need to know about creating a trust and how a trust can benefit you.

Why create a trust?

Creating a trust provides a variety of benefits. First, having a trust enables your assets to avoid probate. Probate is the process the courts use to settle an individual’s estate when they die. The courts tax assets passing through probate. Since assets placed in a trust don’t pass through probate, they aren’t taxed, meaning your heirs keep more. Additionally, assets passed through probate are kept private. If you don’t want anyone to know what you’re leaving your heirs, a trust is the best route for maintaining privacy.

Who should create a trust?

Anyone who wants to use a trust for the reasons listed above should create one. Additionally, if you plan to pass down assets with any contingencies, consider using a trust. Examples of contingencies include heirs only receiving access to a trust at a certain age or after paying for their education. Addressing concerns and laying out line items are made possible through a trust.

How to create a trust

Creating a trust is as simple as contacting an estate planning attorney, setting up a meeting and making decisions. The making decisions step is typically where things become complicated. Trusts come in many shapes and sizes. From an irrevocable trust where your assets sit until you die to a special needs trust where you can place assets for a special needs child, trust choices are abundant. Your estate planning attorney can advise you on what type of trust is best for you. Where the real decision making comes in is who you’d like to leave what. This step, is of course, entirely up to you. You also have to choose a trustee when creating a trust. A trustee protects and distributes the assets in a trust when the the time comes.

How can Boyum Law Firm help you?

Boyum Law Firm can help with your estate planning, Medicaid planning and probate law needs. To contact Boyum Law Firm, click here.