What Can a Trust Do for Me and My Family?

Trusts are often associated with the wealthy, but they aren’t exclusively for the ultra-rich. There is no minimum asset level or net worth required to establish a trust, nor is there a minimum amount of money that must be placed into one.

Understanding Trusts

A trust is a legal arrangement where an individual or entity (the trustee) holds assets on behalf of another person (the beneficiary). These assets can include cash, investments, real estate, business interests, and digital assets.

Trusts can be structured in a number of ways to instruct the way in which the assets are handled both during and after your lifetime. Trusts can reduce estate taxes and provide numerous other advantages.

Key Benefits

Placing assets in a trust ensures they will be managed according to your specific instructions, even if you become unable to manage them yourself. Trusts also bypass probate, allowing heirs to receive trust assets faster than through a will.

Types of Trusts

Revocable (Living) Trusts

These allow the grantor to modify or dissolve the trust at any time. While they avoid probate, assets typically remain part of your estate since you retain control during your lifetime.

Irrevocable Trusts

These cannot be altered after creation. The grantor loses control of the assets, but they are completely removed from your estate.

Testamentary Trusts

Created under a will and probated to establish, these trusts can protect inheritances according to your specifications.

Greater Control

Trusts provide more control over your assets than wills do. You can set specific terms regarding when and how beneficiaries receive those assets.

Professional Guidance

Trusts are not something to undertake without professional assistance. An experienced estate planning attorney can provide the necessary expertise.

If you or a loved one needs assistance with trusts or estate planning, do not hesitate to contact The Stegall Law Firm. We are here to help.