Trusts

Trusts are more complex than wills, because they have more moving parts. First, some advantages.

  • Probate. Trusts don’t have to go through probate, saving your heirs time and money.

  • Privacy. Trusts are not public record.

  • Tax Benefits. Not all trusts provide tax benefits, but some do.

adult-affection-beach-936018.jpg

considerations

Trusts have more specific rules and restrictions than wills.

  • Transfer of Assets. Instead of owning your assets outright, you transfer them to a trust and become the trustee of your assets. You control them, receive the benefits and responsibilities, but when you die, they go to your beneficiaries.

  • Costs. Trusts are more expensive upfront, but offset that by reducing probate costs.

AdobeStock_179164083.jpeg

TYpes

There are three main types of trusts:

  • Testamentary Trusts: The simplest, created through a will.

  • Revocable (or living) Trusts: Created by a separate trust document, usually instead of a will. Flexible and changeable.

  • Irrevocable Trusts: Also created by separate trust documents. Neither flexible nor easily changeable. Can have tax advantages.