One critical aspect of a trust where estate planning is concerned is that they keep in tact and manage assets for children by an appointed trustee until a certain age is reached. At this point the assets are then handed over to the child. There are many benefits associated with an estate trust and because space and length could become as issue, we will only focus on a few of these benefits in this writing.
Trusts are a great way to minimize taxes and who wouldn’t be interested in lowering their taxes of any kind? This is very possible via a permanent life insurance policy and is very popular among trustees. In some cases life insurance proceeds dodge the estate taxation. However, without safeguards in place life insurance proceeds are included in the death and estate taxes liability. One way around this legal expense is the “ILIT” or the irrevocable life insurance trust which removes the life insurance proceeds from the confines of the estate. This ensures that beneficiaries will receive monies from the trust without interruption.
Another advantage of trusts is that they help you avoid the complexity of probate. Probate simply establishes a court supervised process to transfer your assets at your death. Unfortunately, this process can be time consuming and expensive. Trusts provide an avenue for you to set up funds or investments away from your probate estate, which will minimize delays and expenses for your family at your death.
Trusts are also an excellent way to provide security and protection for any of your investments you have made that will benefit your beneficiaries. A good example of this is a father knowing the spending habits of his children and to protect them from these bad habits, only allow for timely payments rather than giving the child access to the entire amount immediately.
Having your assets disbursed in small amounts over time is a great way to ensure that all your hard work and planned isn’t wasted in a relatively short period of time by your beneficiaries. Having a trust will also allow you to dictate how your assets will be disbursed after you are gone by allowing you to place conditions on how and when your beneficiaries will receive the assets of the trust. Examples of this are marriage, age and completing important life milestones.
Having a trust will allow your to also look after the success after you are gone by providing funds and resources for higher education that they can have access to. Education is considered to be one of the most important things you can provide for your child either while living or making provisions for them after you are dead. A trust enables the education monies and resources to be there so they can concentrate on greater achievements and not stress about how they will pay for higher education. Your efforts and insight will be valued and appreciated.
Trusts will allow you to continue contributing to charitable organizations that you feel support your values and you want to help them continue their efforts while you are alive and after your death. A charitable trust for example makes a contribution annually in your honor and after you are gone a large amount will be made to the charity of your choosing. This is a great way to support charities you deem worthy of your favor both while you are living and after you have passed into the next world.
Trusts are a necessary part of any estate plan, especially for those who want to manage assets for their young kids. Find the best trust attorney online today.