Many people assume a trust is necessary only for large or complex estates, but that is not always the case. The need for a trust is less about wealth and more about how your assets are organized and handled over time.
A revocable living trust is a legal tool that allows you to manage your assets during your lifetime while creating a clear plan for their disposition after your death. You place assets into the trust, continue to control them, and can update or revoke the trust as your life evolves. This flexibility allows your plan to grow with you, rather than staying fixed in time.
For many business owners, the answer is yes, you should put your LLC in a trust. Placing your LLC in a trust allows you to coordinate your business ownership with your estate plan and transfer it in accordance with your wishes, and can be especially important when the company generates income or holds valuable assets.
For many homeowners, placing a house in a revocable trust instead of holding it in their own name can make it much easier to transfer the property to their heirs. Because a home is often one of the most valuable assets in an estate, properly placing it in a trust can play an important role in optimizing an overall estate plan.
Establishing a trust is only the first step in building an effective estate plan. Funding a trust means transferring ownership of your assets into the trust so it can manage and distribute them according to your instructions. Without this step, the trust may exist on paper, but it will not control the assets you intended it to.
When starting the estate planning process, it is common to have questions about which documents, accounts, and information are required. One of the first decisions many people face is understanding the difference between a revocable and an irrevocable trust and deciding which option best fits their estate plan.
Ask an attorney what the advantages of a trust are and he or she will inevitably include in that list “privacy”. But how can a trust provide privacy? There are two major ways that a trust provides additional privacy.
An Irrevocable Life Insurance Trust (ILIT) is a powerful tool that should be considered in wealth management and estate planning for those who may be approaching the estate tax threshold. An ILIT can provide you and your loved ones with significant benefits. The attorneys at Evans & Davis can assist you with determining if an ILIT is appropriate for you and your family.
In many cases, a trust may be a better option than a will. Obtaining a thorough understanding of the differences between a will and a trust is a good starting point.
When it comes to estate planning, ensuring that your wishes are honored and your assets are managed appropriately can be a complex and daunting task. One way to add a layer of protection and oversight to your trust is by appointing a trust advisor.
