The Importance of a Trust
Basic estate planning usually begins with a will, which deals with your property and important decisions such as who will be the guardian for minor children if both parents pass away or an incapacitated.
But wills aren’t the final option for every estate, especially given probate and other legal proceedings that must occur before assets are distributed to your family. This is where a trust can help.
What is a Trust?
The distribution of your assets is specified through a trust, a fiduciary arrangement that typically avoids the need for a probate court.
A trust can be structured to take effect before death, after death, or in the case of incapacitation.
Trusts can be established to achieve a range of objectives. A trust may be used, for instance, to transfer property, reduce estate taxes, assist a charitable organization, or safeguard certain assets for children until they reach adulthood.
It's crucial to understand that just creating a trust won't safeguard your assets. Any assets, such as real estate, that you wish the trust to preserve must be retitled in its name. After your passing, anything not titled to the trust will often need to go through probate.
What Can a Trust Help You Achieve?
There are several ways a trust can help you achieve specific estate planning goals including:
Maintaining privacy and confidentiality
Protection of beneficiaries
Providing for children with special needs
Preserving family wealth
Promoting family values
Reducing family conflict
Whether you have a trust in place already or are planning to create one, it is important to meet regularly with a trusted attorney and financial advisors to ensure that your estate planning documents reflect the changing state and federal tax laws and any changes in your goals or circumstances.
Revocable Versus Irrevocable Trusts
There are many different types of trusts, but all trusts fall within two categories: revocable and irrevocable.
Revocable trust: This allows you to retain control of all assets in the trust, and revoke or change the terms of the trust at any time.
Irrevocable trust: Cannot be changed or dissolved. You relinquish all control over any property included in the trust, and it will not be included in your taxable estate.
When deciding on a revocable or irrevocable trust, it is important to work closely with your estate attorney to determine the best solution for your family’s specific needs and goals.
Trusted Estate Planning
If you are ready to set up a trust, choose Elaine McGinnis for greater peace of mind. Elaine will ensure that all your wishes are outlined in your trust, and she can also help you to revoke or amend your trust documents, as well as support you in updating your estate plan based on your life changes.
Start planning your estate today. Contact the Law Office of Elaine McGinnis, P.A. in Tampa; 813-851-3380.