Trusts can provide some very desirable long-term benefits. Some examples are providing for college educations for children or grandchildren, long-term care for disabled family members, or charitable giving with long-term income tax benefits.
A trust is a fiduciary arrangement that allows a third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries. Trusts can be arranged in many ways and can specify exactly how and when the assets pass to the beneficiaries.
Benefits of a trust include control of your wealth, as you can specify the terms of a trust precisely, controlling when and to whom distributions may be made. A trust may also protect your legacy; if property constructed, it can protect your estate from your heirs' creditors or from beneficiaries who may not be adept at money management. Trusts can also provide privacy and probate savings, as probate is a matter of record, a trust can allow assets to pass outside of probate and remain private, in addition to possibly reducing the number of dollars spent in court fees and taxes in the estate administration process.
Choosing and creating a trust can be a complex process; the guidance of an attorney with estate planning expertise is highly recommended. Call Holder & Associates, P.C. for expert guidance.