Two of the most important components that make up the estate plan are the Last Will and Testament and Trusts. Most people are aware of what a will is, but trusts can be a little complex to understand. They have a more complicated structure, and moreover, they have various types, so it can be difficult to understand which one is right for you.
Nevertheless, having a Trust in your estate pays off. If you are confused about what it is or which type of trust is right for you, consulting with an estate planning lawyer can help. They can also explain to you how trusts can benefit you in the long run. You can find the best lawyer with a simple estate planning lawyer near me search on the internet.
Reasons to include trusts in your estate plan
- You can avoid probate.
Probate is a process where a deceased person’s assets are dealt with according to the terms of their will. The process can be lengthy and take several months, if not years. It often takes about two years to complete and costs a lot of money. Sometimes attorneys take 5% of the estate’s value. A trust allows you to settle your assets in a less messy and expensive manner.
- You can name your child’s guardian.
If you have children under the age of 18 when you plan your estate, you will need to appoint legal guardians. This can ensure that a person you trust is raising your kids and that they will be safe after you are gone. If you do not make the decision while you are still alive, the court takes matters into its own hands.
- You can reduce estate taxes.
Yes, you can reduce taxes on your property by moving them into a trust. Trusts are a great way to reduce taxes, and in some cases, they even eliminate them completely. There are various different types of trusts, but they all account for tax planning.
- You can maintain your privacy and confidentiality.
One thing you need to know about probate in Hammonton is that it makes your family’s financial matters public. As soon as the procedure begins, all the private financial information goes on the public records. On the other hand, trusts ensure confidentiality. The information remains between you and the beneficiaries.
- You can make sure your children are financially protected.
Trusts make sure your children are financially protected when you are no longer there to care for them. Keeping assets in the trust will secure the money and make it available for your children when they are old enough.