If someone has thought about trusts, it’s likely because they’re reluctant to go through probate. Trusts are marketed for that reason, and they’re very effective. However, there are other reasons to consider a trust, and some are listed below.
Protecting Assets for Some Beneficiaries
This isn’t a common reason to get a trust, but it’s one of the most vital. When most people envision the process of estate planning, they think of leaving things to their spouses, children, and other relatives. However, some beneficiaries can’t handle an inheritance. Here, a trust is an essential part of the estate planning process, because it allows a testator to give their protected assets to the right people.
Eliminating or Reducing Taxes
Estate taxes vary by jurisdiction, and an Attorney in Walker MN can provide state-specific advice. These taxes can be quite high in some situations, but creating a trust can reduce or eliminate estate fees.
Managing Property for an Incapacitated Person
Many people today aren’t as concerned about dying as they are about living too long. A long life is great, but it comes with risks and worries as well. When parents get old or infirm, it may be difficult to manage their assets, and filing a guardianship application is the most common strategy. However, a joint trust or durable power of attorney can help adult children monitor a parent’s finances.
Avoiding Will Issues
Wills are more likely than trusts to be disputed. That’s because will only take effect when a person passes away, while a trust is in effect as soon as it’s signed. If a will is to be contested, all one must do is prove that the person was incompetent. To dispute a trust, one has to prove not only incompetence but that they were when properties were transferred, and decisions were made.
A trust can prevent all of these issues and much more. Trusts are very private, they stay out of probate court, and no one sees them unless they’re allowed by the trustee or settlor’s Attorney in Walker MN. If any of these reasons apply to a case, the client should consider calling to Meet Borden Steinbauer Krueger and Knudson P.A.
