Establishing Trusts To Safeguard Your Love One’s Future
A trust (trust fund) is an effective way to determine how your assets will be managed after you pass. A trust can be used to hold assets that will pay for future medical expenses, education or philanthropic gifts. Creating a trust protects your assets from the probate process and helps save you money by minimizing estate and income taxes.
What Is A Trust?
A trust is a legal entity, sort of like a container that holds the title to property for the benefit of a person or entity. The person who established the trust is called the trustor, the person administering the trust is the trustee, and the person benefiting from the trust is the beneficiary.
A trust is an instrument that you can use to direct how your property will be distributed after your death in a seamless process for your heirs. The trustee has the authority to follow your wishes as set forth in the trust after your death, without the involvement of the probate court, which can be a long, expensive and public process. A trust can relieve the heartache and stress on your heirs that can come as a result of poor planning.
What Are The Basic Types Of Trusts?
The two basic types of trusts are:
- Revocable living trusts: A revocable living trust is created while the trustor is living, and can be changed or revoked at any time. A revocable trust does not have the same tax benefits that an irrevocable trust has.
- Irrevocable trusts: An irrevocable trust, once created, cannot be revoked.
Why Should I Consider Setting Up A Trust?
- To keep settlement of the estate private
- To stipulate arrangements for minor children or family members who are incapable of providing for themselves
- To avoid probate
- To direct the management of personal assets
- To minimize estate taxes
Can I Set Up A Trust On My Own?
Yes, you could download boilerplate forms online and try to put together a trust on your own, but it is wise to seek the knowledgeable guidance of a skilled estate planning attorney from Mahaffey & Associates, LLC. Our skilled trust attorneys have experience helping clients from all walks of life and income brackets create a sound estate plan. Get peace of mind and give your heirs the assurance that you have made solid financial arrangements in advance.
Contact A Skilled Toledo Trusts Attorney Today
The attorneys at Mahaffey & Associates, LLC, are focused on making the process as simple as possible for our clients. We strive to make sure our clients get attentive, individualized service for their estate planning needs. Call us today at 419-719-5086 or contact us online to schedule a free consultation. We serve Toledo and the entire northwest Ohio area.