Creating a trust can be a much more important estate planning step than creating a last will and testament. While many people assume that a will should be the centerpiece of their estate plan and should control what their legacy will be, the reality is that a trust can actually have many significant benefits.
Because there are different kinds of trusts and it can be complicated to determine if you need a trust and what type of trust is right for you, you should strongly consider getting legal help with trust creation from a trust lawyer.
Zimmer Law Firm can provide the help and support you need to determine if you should create a trust instead of a last will and testament or in addition to a will. Give us a call to find out about the help our legal team can provide with creating a trust or read on to find out some key reasons why trust creation may be better for you than making a last will and testament.
Trust Creation Gives You More Control
When you create a trust, you can have much more control over who inherits, when they inherit, and how they inherit. You can also control how the assets in the trust are managed. For example, if you make a last will and testament, you typically would just specify who should inherit.
If you make a trust, on the other hand, you can provide instructions that require an inheritance to be available only after certain conditions are met, such as making an inheritance available only after your son graduates from college. You can also appoint a trustee to manage trust assets and use those assets for specific purposes to provide for a beneficiary who you may think is not responsible or capable enough to manage trust assets on his own.
Trusts Can Provide More Protection for Assets
Trusts can provide protection from assets during your lifetime so you actually have assets to leave a legacy. For example, with the right type of trust, you may be able to ensure you aren’t forced to spend all of your money on nursing home care before you qualify for means-tested Medicaid to cover care costs. Medicaid can be the only source of payment for nursing home care, which may become necessary, but unless you’ve got an asset protection plan in place, you could be forced to spend all of your wealth before you become eligible for this means-tested benefit.
Assets can also provide protection if your heirs or beneficiaries aren’t responsible or if they rely on means-tested government benefits themselves. If you think your heirs or beneficiaries will squander the money, for example, you can make a spendthrift trust they cannot access trust principal.
Trusts Can Help You to Avoid the Probate Process
When you pass assets through a trust, the assets can transfer through the trust administration process instead of through probate. This can be much faster, much less costly than probate, much less stressful for your loved ones, and more private. There are many important benefits associated with avoiding the probate process, and these benefits can make trust creation worthwhile.
Trusts Can Reduce Costs Associated with the Transfer of Wealth
The costs of transferring assets can sometimes be high. If your estate must pass through the probate process, the costs of probate are around three percent to seven percent of the value of the estate, according to Investopedia. This could be a lot of money.
If you are leaving your wealth to your kids or to anyone other than a spouse, significant financial loss could also occur if your estate is large enough to trigger estate tax. The estate would have to pay these taxes, greatly reducing the amount of money your heirs or beneficiaries could inherit.
Getting Help with Creating A Trust
If you want to take advantage of the benefits associated with trust creation or if you are not yet sure if creating a trust is the best course of action for you, you should reach out to an experienced Cincinnati trust attorney. Zimmer Law Firm has provided assistance to many clients in deciding if a trust should become a part of their estate planning process. If a trust is right for you, we can help you to create one.
To find out more about the assistance we can offer in connection with trusts, join us for a free seminar. You can also give us a call at 513-721-1513 at any time.