What Are The Benefits of Trust Planning?
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Trusts have gained significant popularity in personal estate plans due to their numerous potential benefits. They are specifically tailored to the person setting them up. Whether you want to pass your assets to the next generation, protect yourself from potential creditors, prevent wasteful spending by young heirs, or minimize estate taxes, there’s likely a trust that suits your needs.
Benefits to setting up a trust may include:
- Flexibility: Trusts can be customized to meet the specific needs and preferences of the individual establishing them.
- Privacy: Unlike public probate proceedings, trusts operate privately, allowing for discreet management of assets.
- Ease of Administration: Trusts streamline the process of asset distribution and management
A revocable trust is the most common type of trust. This type of trust can be changed even after it is set up. On the other hand, irrevocable trusts are not able to be changed. These trusts can be an excellent option for estate tax planning.
When trusts are appropriately structured and funded, they likely offer the significant benefit of bypassing probate. Probate, a public court process, can be time-consuming and costly. Trust planning provides a potential avenue to avoid probate.
Contact your local Federated® marketing representative to discuss this important topic with our network of attorneys, who specialize in trust and estate planning.
