You’ve worked hard for decades. You have counted pennies, shopped the sales, and now you are reaping the reward. After all of this hard work you are ready to pass down some of your assets to your children or grandchildren. Can you do this through a will? The short answer is yes you can, however, a will has to go through the probate process which can mean anywhere from a few months to a few years until the assets are distributed. People also have the power to contest the will if they believe that they deserve more than they got. To make matters even worse, all that money that you so carefully set aside for all the people in your life is being spent on probate fees.
So, what are your other options? Well, the best option is to form a trust. A trust is the best way to ensure that you maintain maximum control of your assets. So, what are some benefits of establishing a trust over a will? For starters, a trust allows you to place restrictions on how you wish to have your assets distributed once you pass away. What makes trusts so unique is that because there are so many different types of trusts, you can tailor them to fit your family’s needs, whatever they may be.
Do you have someone with special needs in your family? The best way to ensure that they continue to receive the care that they need is to establish a special needs trust. A special needs trust allows you to specify exactly how you wish your loved one to be taken care of when you are no longer able to do so.
Want to be able to leave something to your child and not have to worry that they could lose it creditors or an ex-spouse. Establish a trust so that you can be assured that your assets stay exactly where you want them to. What’s the best part about establishing a trust over a will? And to make matters even better, assets that you gift out through trusts are not subject to pay income tax.
You don’t necessarily have to stick with one or the other when it comes to your estate planning. All you have to do is identify what you want to do with your assets and find a way to establish it. You can outsmart the probate system; all you need is some legal advice to make it as efficient as possible.
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