A trust is one of the most important legal items you can create. It protects your property and other items when you die. It can make your family have an easier time of distributing your assets and dividing up your belongings, avoiding family feuds along the way. Let's examine the important items you need to know about a trust in today's post.
The biggest benefits of creating a trust include the following:
- Going through probate is a public process. A trust can prevent your issues from being a matter of public record.
- You can protect your legacy from the creditors of your heirs.
- You can write precise terms of a trust, controlling your money and other assets without being questioned.
The common types of trusts you can create include the following:
- Marital trust
- Testamentary trust
- Bypass trust
- Charitable lead trust
- Irrevocable life insurance trust
- Grantor Retained Annuity Trust
- Generation-skipping trust
- Charitable remainder trust
- Qualified Terminable Interest Property trust
A revocable trust helps move your assets outside of probate and without being taxed to your heirs. This type of trust can be altered at any point by the person who created it. An irrevocable trust can also help move your assets outside of probate to your heirs, but it cannot be altered at all by the creator.
Understanding a trust can make it easier to create one with the help of an attorney. You want to protect your assets without making mistakes. Be sure you know what the trust can protect and how it can help your heirs avoid certain taxes.