It can take a lifetime to acquire assets and build a legacy to leave behind to your children. You don’t want to spend most of your life providing for your loved ones, only to worry that once you pass on, they will be unable to inherit the assets and wealth you wish to leave behind for them. You also shouldn’t have to fear that a beneficiary or creditor will tarnish your legacy after your passing.
These are important reasons to hold your assets in a trust. This overview will explain certain essential benefits of doing so.
It’s important to understand that there are several different types of trusts into which you may place your assets. Options include living trusts, revocable living trusts, spendthrift trusts, and various irrevocable trusts. To better understand which type of trust is ideal for your goals, consult with an estate planning attorney. They will discuss your options and help you determine which type of trust is ideal for you.
In general, though, when you place assets into a trust, you are giving the Trustee of the Trust control over the assets. Often, this Trustee can be yourself. Other times, a third party can be named as Trustee and you choose who this third party will be. Thus, you can ensure the person controlling certain assets is an individual or professional you can rely on to manage them according to your wishes.
There are many reasons to consider setting up a trust. Again, one is to protect your legacy and ensure your children or surviving loved ones inherit the assets you wish to leave for them after you pass. Wills are usually not a good choice. Although you can specify in your will that you would like to leave certain assets to your children, Wills require probate – time, expense, court appearances, lack of privacy, lack of control, and no control or guidance for children or other beneficiaries. Trusts are usually a much smarter and safer choice.
Leaving assets to your children in your will does not mean your kids will immediately inherit those assets as soon as you pass away. Probate can be a drawn-out process that keeps your children from quickly receiving what you’ve left to them.
Additionally, probate is a matter of public record. For various reasons, you may want to leave assets to your children and surviving loved ones without having to worry that members of the public or media will be able to learn about what your children have or have not inherited.
Placing assets in a trust can also protect them from being seized by creditors. Additionally, when assets have been properly placed in a trust, if the Trust and overall plan has been set up with the assistance of a qualified professional, those assets will be far less likely to fall into the hands of beneficiaries who might not properly manage them. This is yet another way in which setting up a trust for your assets can ensure your legacy is thoroughly protected.
If you wish to set aside assets in a trust so that your loved ones receive their inheritance according to your wishes, enlist the help of a Santa Clarita estate planning attorney at the Law Offices of Andrew Cohen. Our experts will help you establish a trust that serves your needs and goals. Contact us online or call us at 661-481-0100 to learn more.