How Are Trusts Used?
You can use trusts to ensure the orderly and private transfer of property to another individual or to secure the cost of providing for an elderly relative, parent or disabled child. Trusts can help finance a loved one’s education and even serve as portable pension plans. Trusts can help you avoid probate costs and protect assets from creditors’ claims. They can provide a structured way to administer your personal and financial affairs should you become incapacitated, and they can be used to make tax-advantaged charitable gifts. You can rely on trusts to manage assets for the benefit of your heirs and other beneficiaries and provide for the continuation of alimony or child support payments. Trusts can save a business from an untimely liquidation or a disadvantageous sale. Trusts are also used to avoid unnecessary capital gains taxes and manage your estate tax exposure. Without proper estate planning for example, your beneficiaries could stand to lose as much as 80% of their inheritance
