Estate Planning with Trusts
Many people have preconceived notions that trusts are only for wealthy families. However, this is far from the truth; trusts can be invaluable tools in the estate plans of millions of individuals. For example, if you have minor children, you need a trust. If you want your family to avoid dealing with the hassles of probate court upon your passing, you need a trust. If you want to maintain flexibility with regard to the disposition of your assets, you need a trust. If you want to maintain privacy, you need a trust. If you want to lower estate, income, or other potential taxes, you need a trust. If you want to have creditor protection, you need a trust. Remember, in a trust you can choose to give beneficiaries certain assets at certain ages or keep the assets in trust for them for the rest of their lives.
Trusts are simply an arrangement where one party holds property on behalf of another party. Trusts are created by the person doing the estate planning (the grantor), who authorizes another person (the trustee) to manage the assets for the benefit of a third party (the beneficiaries). There are many reasons for establishing trusts including creditor protection, tax minimization or providing for the needs of underage beneficiaries.
A few of many useful estate planning trusts are: