5 Benefits of Choosing To Set Up a Trust

Estate planning is an essential aspect of responsible financial management. Through this process, you can maintain power over your assets and make your wishes for them clear—even if you can no longer articulate them. One of the most effective ways to plan your estate and protect your legacy is by setting up a trust. However, not everyone knows what comes with this particular document. We’ll discuss the benefits of choosing to set up a trust and why you should consider one for yourself and your family.

You Can Customize Asset Distribution

First and foremost, trusts allow you to customize your asset distribution plan. This means you can decide how you want to divvy up your assets among each of your beneficiaries. You can also set up specific conditions that beneficiaries must meet before receiving their inheritances. For example, you can specify that your grandchildren won’t inherit until they reach a certain age or that a portion of your assets will go to charity.

Accommodates Complex Family Dynamics

Trusts also have the flexibility to accommodate complex family dynamics, such as blended families, childless couples, and unmarried couples. If you have a blended family, for example, you might want to ensure your biological children have what they need while also providing for your spouse. A trust allows you to achieve both objectives. Similarly, if you’re in a long-term unmarried partnership, a trust can ensure your partner has the financial resources they need after you pass away.

Helps You Avoid Probate Court

Following your passing, all your assets must go through probate court, which can be time consuming and costly. Additionally, your beneficiaries may not receive their inheritances for months or even years after your death. By setting up a trust, you can avoid probate court altogether. This means your beneficiaries can receive their inheritances quickly and without the hassle of subsequent legal proceedings.

Reduces Estate Taxes

Another benefit of choosing to set up a trust is that it could help you cut down taxes on your estate. The federal estate tax currently applies to estates worth millions of dollars, but many states have their own estate and inheritance taxes. A trust can reduce the amount of taxes your estate will be subjected to by removing assets from your taxable estate and directing them to your beneficiaries. This means that more of your possessions will go to your family members and loved ones instead of to the government.

Keeps Information Private

When assets go through probate court, your will becomes public record. This means that anyone can access information about your estate, including the value of your assets and the identities of your beneficiaries. A trust, on the other hand, is a private document. Only your beneficiaries and the trustee will have access to the information in the trust, ensuring that your financial affairs remain confidential.

Setting up a trust provides many short- and long-term benefits for you and your family members, so don’t miss out on the chance to set yourself up for success. Speak with Vancouver Wills and Trusts today to start planning for the future. Our team of living trust attorneys in Vancouver, WA, can guide you through the process and ensure your wishes are never in question.