The better you plan your estate, the more you ensure that it is distributed in accordance with your wishes once you die. A valuable tool in estate planning is the trust. There are many different types of trusts, and setting them up can be somewhat complicated. A College Station estate lawyer can explain how each type of trust works and help you decide what is best for your needs.
Advantages of Setting up a Trust
Each type of trust is designed with particular advantages in mind. Generally speaking, however, the following are some of the more important reasons why a trust might be in your best interests.
- You can avoid estate and other taxes. While one would have to own a substantial estate for it to be subject to taxes, a life insurance policy or other type of benefit could bring the total value of your estate to a level where taxes are due. Assets, such as money and insurance policies, are placed in the trust and kept separate from the rest of your estate. The result is that your beneficiaries will be less likely to pay taxes on their inheritance.
- You can avoid probate. Probate can tie up assets and be costly. Assets you place in a trust will not need to pass through probate, and therefore the assets can become available to your beneficiaries right away after you die.
- You can help a charity of your choice. You can ensure that a portion of your estate goes to a charity you wish to help by setting assets aside in a trust for this purpose.
- You can control how assets are doled out to beneficiaries. You may, for instance, have a son or daughter who is not skilled at managing money. The instructions of the trust can dictate that assets be paid to that individual a little at a time. You can then have the remainder paid in a lump sum later on when you believe the person in question may be more responsible with money. You can also designate that money from the trust only be paid to a beneficiary under certain conditions, such as that he finishes college.
We Can Help You Set up a Trust or Answer Questions
There are many types of trusts, and each brings certain advantages. A College Station estate attorney will help you determine what trust is best suited for you and make sure that it is set up in accordance with state law. Call Peterson Law Group today to arrange a consultation at 979-703-7014 or 936-337-4681.