Who should have a trust?
There are many different reasons why you might want to have a Trust. You might want to avoid probate; provide for minor children; provide for someone too young or who lacks the ability to manage money; avoid paying federal estate taxes; contribute to charity; distribute real property, particularly if it is located in another state; keep property separate; provide for yourself and your care if you become incapacitated and avoid a conservatorship proceeding, maintain privacy; and decrease the possibility of a legal challenge to the way you want your property distributed. If any of these situations apply to you, you should consider using a Trust as part of your estate planning. Probate is the legal process where a court oversees the payment of debts and distribution of property under a Will. This can be a slow and costly process if the estate is even moderately large and complicated, and all details of the estate are made public as part of the court proceedings. Several states have summar
Any person who owns assets, including real property AND wants to avoid the expense of a probate administration, should consider creating a Trust. A trust can also be an excellent tax-avoidance tool. Many people with substantial assets or minor children can benefit from a trust. If a decedent’s estate is worth more than $1,500,000 in year 2004, it is subject to estate taxes. For a married couple, a properly drawn A/B Trust results in the first $3,000,000 of their assets being protected, instead of only $1,500,000. Thus, the estate taxes would not have to be paid and could instead go to the heirs estate tax free. If you own real estate in several states, placing some of the real estate in a Trust prior to death may avoid unnecessary probate expenses. Trusts can be included in your will or prepared separately. Many people with young children also use a trust to ensure that their minor children will be cared for if they die. Should something happen to you and you do not have a trust for yo
