Trusts offer a way for individuals to manage their assets and property after they pass on. This estate planning tool is one of the smartest ways to ensure that your loved ones and other beneficiaries receive the money and assets set aside for them. Here’s why you should consider setting one up today.

Why Trusts Are Essential

1. Asset Protection

Probate is a process that’s supervised by the court and begins when a deceased person’s estate needs to be distributed. When you pass on, your estate will likely go through probate and be subjected to paperwork, fees, and taxes that can be quite significant. This can be a costly affair and may take up to a year to finish. Trusts allow beneficiaries to bypass probate and receive property and assets quickly without the need to undergo public scrutiny. When your property is placed in one, your trustee will allocate your assets according to your instructions and without needing court approval.

2. Tax Reduction

Depending on the kind you set up, you will be granted certain tax protections. For instance, a revocable living trust lets you delegate a person to oversee and control your property; it also offers provisions such as credit shelter, which reduces estate taxes. On the other hand, an irrevocable life insurance trust protects your proceeds from your life insurance death benefit. Your beneficiaries can collect the proceeds from your policy without worrying about estate taxes.

3. Flexibility in Asset Distribution

You decide and control how to distribute assets. You can put down in detail the amount of money a beneficiary will receive, and how it will be bestowed. For example, you can set aside funds for your children or grandchildren’s education or living expenses. You can also specify if it will be given as a lump sum or in a regular amount over a set time. It’s also possible to bequeath your assets to charities and organizations that are meaningful to you.

When it comes to setting up trusts, turn to an experienced and qualified estate planning attorney from Katzman, Logan, Halper and Bennett in Cincinnati, OH. Count on this esteemed law firm for excellent legal advice and skillful representation when it comes to probate administration, insurance claims, divorce, wills, personal injury, and other practice areas. Call their office today at (513) 793-4400 to schedule an appointment, or visit their website to explore their services.