Trust funds, or trusts, are one of the most misunderstood estate planning arrangements. Contrary to popular belief, they are not just for the extremely wealthy. What’s more, they are not all that challenging to set up, especially if you turn to seasoned estate planning lawyers for guidance. Here are just a few ways the entire family could benefit if you do so.
The Top Advantages of Setting Up a Trust
1. More Control
In a trust, you can establish specific parameters for distributing various assets. For example, you can devise a disbursement schedule and even include terms limiting what the funds may or may not be used for upon distribution. As long as the terms are unambiguous, this will serve to mitigate potential disputes upon your death.
2. Shorter Probate Proceedings
Although the estate will have to go through probate upon your death, any assets that were transferred to a trust prior to your passing will not. This could save beneficiaries a considerable amount of time and money. It will also ensure they receive their inheritances exactly when you want them to by preventing the funds from being tied up in legal proceedings.
3. Lower Taxes
Depending on the size of the estate, a trust can serve to reduce the tax burden for beneficiaries. Assets transferred to a trust are not subject to estate taxes. Placing assets in a trust will also reduce the total taxable value of the estate, thereby minimizing potential tax obligations even more.
If you need help drafting critical estate planning documents like wills and trusts, turn to Vernau Law LLC. Based in Granville, OH, this law office has been providing comprehensive legal counsel throughout Franklin, Knox, Licking, and Muskingum counties for more than a quarter century. In addition to estate planning, they can assist with business organization, family law disputes, income tax preparation, personal injury accidents, and civil litigation. To request an initial consultation, visit their website or call (740) 587-2637.