Most people, when they are undertaking the task of estate planning, go for a Will. But there are also other ways. Wills and Trusts transfer estates to heirs, but the two have some key differences.
If you are considering estate planning in Ridgeland, get in touch with an attorney today and get the right help.
What is Trust?
A Trust is a legal framework that enables a trustee(third-party) the right to hold assets and property of the person on behalf of the beneficiaries. Trusts are an effective estate planning tool that can work both with or separate from Wills. A key difference is that Trust can be used both during life and after the creator’s death; however, a Will only comes into effect after the creator’s death.
What are the benefits of a Trust?
Trusts have many benefits. Some of them are:
- Wills can be contested, but Trusts cannot
- Trusts can skip probate court, and thus beneficiaries will receive their assets sooner
- Trusts greatly minimize estate taxes
- Trusts provide a great ability to control future wealth by establishing how assets should be distributed
Should you have a Trust?
Trust is a good option for you. It depends entirely on your situation. Consult a lawyer when creating a Trust is always a good idea. Still, there are some specific cases in which Trusts may be beneficial, such as:
- You own property – especially if it is in a different state
- You have over $200k in assets
- You wish to have privacy regarding your assets
- You want to skip probate court or simplify the probate process
- You have a taxable estate
- You want to set up conditions on the inheritances
Types of Trusts
Many different types of trusts serve other purposes.
- Living Trust
- Revocable Living Trust
- Irrevocable Trusts
- Joint Trusts
- Testamentary Trusts
What should you add to your Trust?
There are certain assets that you can use to fund your Trusts. For this part of the process, consult an attorney to get the best advice on what you should include, depending on your situation. Some of the common assets included in Trusts are:
- Houses and other real estate properties
- Tangible property – things like vehicles and pieces of jewelry
- Retirement accounts
- Brokerage accounts
- Non-retirement investments
- Cash accounts
- Large assets
- Business interests
- Certificates of stocks or bonds
- Non-qualified annuity
Thinking of starting a Trust?
If you are thinking of starting a Trust or have any queries regarding the Trust process, contact a lawyer to