Most people understand the benefits of a general estate plan. It protects loved ones from duking it over assets in court, and it also allows you to fulfill any final wishes after passing. However, most people aren’t aware of the benefits that trusts provide.
Trusts are incredibly useful tools for any Tennessee resident, especially if you pick the right trust for your family. But what exactly do trusts provide?
Four benefits of developing a trust
There are four main benefits that trusts offer estate planners, including:
· Avoiding probate – A will has to be approved by the probate court judge to be placed in effect. This gives family and friends an opportunity to contest the will. However, a trust does not have to be approved by the probate court judge to be placed in effect. A trust is effective when you sign it. Therefore there is less opportunity to contest the trust by family and friends.
· Distributes property easily – Along with avoiding court, trusts allow planners to distribute their assets easily among friends or other beneficiaries.
· Protects your privacy – A trust is not public information, so you won’t have to worry about your private details being leaked through public records.
· Saving money for your trustees – You will help family members and other beneficiaries save thousands of dollars through attorney fees and court costs.
These are just the main benefits of incorporating a trust into your estate plan. There are specific types of trusts that will allow you tax benefits or other incentives for your family, such as special needs trusts.
The right trust for you
If you decide to implement a trust, make sure you are selecting the right trust for your interests. Some of the most common trusts include charitable trusts, asset protection trusts and community property trusts.
Find a legal expert who can guide you in the right direction for what trust to develop and start an easier path for your estate plan.