Estate planning is an important step in preparing for your future. One of the most valuable tools to use when putting your affairs in order is a living trust. This will keep your assets secure until it’s time to distribute them upon your death. Here are some of the key benefits trusts offer that wills can’t provide. 

What Are the Advantages of Drafting a Trust?

Avoid Probate 

Probate is the court process of administering a decedent’s estate according to their will. It’s often a protracted and expensive proceeding. If your property is owned in the name of a trust, you’ll avoid probate and your assets will be distributed among your beneficiaries faster. The probate process is public, but creating a trust will also allow your affairs to remain private.

Reduce Estate Taxes

Trusts are an essential tax preparation tool used in estate planning. Once your assets are placed into a trust, they’re no longer considered to be your property. Thus, the income and capital gains they generate will be taxed according to the laws governing trustees. This can reduce or completely waive the taxes your estate would have originally owed upon your passing.   

Retain Control of Asset Distribution for Minors 

Leaving money directly to a minor presents a number of challenges because the law doesn’t view them as having the capacity to receive assets. Thus, naming children as beneficiaries in your will means the court will need to get involved and appoint a conservator to manage the inheritance on their behalf. If you intend to pass on money to minors, doing so in a trust will eliminate court involvement, allow you to designate the person who will manage their inheritance, and ensure the assets are used only for purposes you deem important. 

If you’re trying to determine whether a trust is right for your situation, consult an estate planning attorney from Woodlawn Law Offices. Offering more than 25 years of experience, Attorney David Schmidt has helped numerous clients in St. Charles County, MO, put together comprehensive and valid estate plans. His reputation for providing honest and accurate legal services has made him the leading resource for guidance in this area of law. Call (636) 240-6667 to discuss your estate planning goals, or visit the firm online for more information on how they’ll help organize your affairs.