Five Reasons Creating a Trust May be Right for You
Estate planning attorneys at Zimmer Law Firm in Cincinnati, Ohio provide you with assistance in understanding legal tools that you can use to provide for your loved ones, protect your assets, and make sure that you leave your desired legacy if you pass away. There are many different legal tools that can help you to keep your wealth safe, protect your wealth, and provide for your family members but one of the most versatile and popular tools is a trust.
It’s a popular misconception that trust creation is something only wealthy people need to be concerned about, but this is definitely not true as trusts can be useful for people from a wide variety of income levels. You should reach out to estate planning attorneys at Zimmer Law Firm to find out if trust creation is the best course of action for you. You can also read on below to see five reasons that creating a trust may be the best course of action for you.
Creating a Trust Can Benefit You if You Own a Business
When you own a company, you need to have a plan in place to facilitate the quick transfer of control in case of your incapacity or in case you pass away. You also want to make sure that your business assets do not cause your entire estate to be subject to estate tax because this could substantially reduce the inheritance you can leave to heirs or beneficiaries. In some cases, high estate tax on business assets could even necessitate the sale of the company’s assets if you don’t have enough liquid assets in your estate to pay taxes upon your death. Trusts could help you to facilitate the timely transfer of wealth while avoiding or reducing estate tax so you can protect your company.
Creating a Trust Could be the Right Choice if You are a Family Breadwinner
If you have loved ones depending upon you, you need to ensure they can inherit as quickly as possible if you pass away. A trust can make it possible for assets to transfer through the trust administration process, which is must faster than the probate process. Your loved ones could inherit assets more quickly that you have left behind to provide for them when you are no longer able to bring in income for the family because you have passed away.
Trust Creation Could Give You the Maximum Control Over Assets
If you want to control what happens to assets even after you have passed on, a trust can give you the opportunity to achieve this goal. You can create a trust document which provides specific instructions regarding how trusts assets are to be used. This can be beneficial, for example, if you want to provide assets that are to be used specifically for the care of pets you have left behind or if you want the trust funds to be used to pay for a college education for your grandchildren.
Trust Creation Could Allow You to Safely Leave Assets to a Minor or To a Disabled Relative
If you hope to leave money to someone who is not legally able to manage an inheritance, a trust can be the best approach. When you leave money to a minor, you can create a trust and name a trustee to manage the assets rather than having the court appoint a guardian for the funds, which is what would occur if you left the assets directly to the minor. You can also provide specific instructions for when and how the child should inherit when he becomes an adult. If your loved one is disabled, the creation of a special needs trust could be even more important because if you left money to your disabled loved one directly, not only might he be unable to manage the funds but the transfer of wealth could also cause a loss of access to means-tested benefits like Medicaid.
Trust Creation Can Help You to Facilitate the Timely, Private Transfer of Assets
When assets transfer through the trust administration process, not only is the process faster than the probate process but it is also more private as well. Your financial situation and the inheritance of your heirs or beneficiaries will not need to become court record since the process of transferring assets can take place outside of the court system.
Getting Help from Estate Planning Attorneys
Estate planning attorneys at Zimmer Law Firm can help you to take advantage of all of these trust benefits by creating the type of trust that is right for you. To find out more, give us a call at 513.721.1513 or join us for a free seminar.