Whether most want to avoid the topic or not, there will come a time when we will all have to decide who to leave our assets to after we’ve passed on. It’s not easy deciding how to go about doing this or who gets what, but with our help, the process can be easy and very reassuring. In this blog post, we’ll discuss four reasons why you should consider drafting a trust.
What Are They?
A trust is a written legal document where your assets are held during your lifetime and are then transferred to chosen beneficiaries at the time of your death. If you have any questions about trusts, give us a call and we’ll guide you through the process of securing your needs.
They Can Help You Avoid Probate
One of the benefits of a trust is that they can help avoid probate. This means that there will be a faster distribution of assets to the people you’ve chosen to receive your belongings. Successor(s) named in the trust will also be given the responsibility of distributing your assets and paying bills according to your instructions. A trust can further let you choose a guardian to care for your children in the event something happens to you before they reach adulthood.
Saving You Money
Saving money through a trust really depends on the type of financial situation you’re in. A trust is a complex legal document; you’ll have to transfer all of your assets, such as stocks, bonds, bank accounts and certificates, through separate paperwork. Changing a beneficiary on your life insurance policy, IRA or 401(k) plan will also need careful planning. A trust, however, can help save your estate money, as at time of death distribution of assets will not go through the costly process of probate.
Trusts also hold up better in court compared to wills in the event that someone comes forward to contest something in your estate. There is no difference in estate taxes and savings between trusts and wills, yet the former provide further savings in the event of married couples having joint trusts.
The level of privacy a trust provides is another huge benefit. A trust is not made public upon your death; the distribution of assets will be done in private. A will, on the other hand, will become public record and all transactions pertaining to your estate will be made public as well. Trusts also help avoid probate when dealing with property that is owned out of the state. Through a will, however, out-of-state property will have to go through probate but not necessarily with a trust.
Should you become ill or incapacitated, a benefit that your trust provides is allowing your trustee to quickly steer the direction of what becomes of your personal belongings. A will, however (without an attorney), can result in a court deciding who handles your affairs. Note that with a will and oversight by a probate attorney, you can avoid court-appointed conservators.
Legal Help with a Personal Approach
Having a trust is the best way to give yourself and the people you love peace of mind. This is especially true with estates with larger values. If you’re ready to start planning for your family’s well-being after you’ve passed on, then our probate attorneys in McAllen can help you.