The Advantages of Setting Up a Trust


Setting up a trust is not a cheap undertaking. While some attorneys offer a basic package for a flat fee, the bill can mount quickly. Pricing depends on the type of assets in the trust and the distribution strategy. Before you set up a trust, you should seek the advice of an estate planning attorney. It is important to ensure that your trust will meet your needs and objectives.

A trust has a number of advantages. A trustee is a person or company that manages the trust’s assets. A trustee must have expertise, experience, and communication skills to meet the needs of the beneficiaries. While an individual trustee can be a family member, a corporate trustee can help protect ties with beneficiaries and establish continuity. The trustee should be chosen carefully. The trustee will oversee the distribution of trust assets and the beneficiaries. A corporate trustee is a reliable option for those seeking professional management of a trust.

A trust may also help the beneficiaries avoid taxes and probate. It can also protect assets from creditors and provide for the care of minor children. It can also help beneficiaries manage bequests if they become incapacitated. While a trust requires time and money to set up, it cannot be revoked or modified. Trusts are also useful for providing for an underage beneficiary or an individual with a disability.

A trust can also help families keep financial matters private. It can avoid the lengthy and expensive probate process and distribute assets in a more timely manner. The trust is often a better choice for estate planning than a will. It can be difficult to get an individual to sign a document that will keep a secret.

When setting up a trust, it is important to ensure that the appointer understands its requirements and how assets will be handled. This helps the trustee avoid misunderstandings between beneficiaries and makes the work of the trustee easier. It also minimizes the chance of disputes between beneficiaries. This can be a huge benefit to both parties.

A trust is more expensive than a will, but it can help avoid probate. It can also be more complex. A trust may require the services of an estate planning attorney, who can charge a high fee to discuss a situation. Additionally, an estate planning attorney will charge additional fees for writing the documents. However, despite these additional costs, a well-crafted trust will save your family members a lot of money by avoiding the time and hassle of probate.

A trust also protects inherited assets from financial irresponsibility on the part of the beneficiaries. As long as the assets are not spent in the beneficiary’s name, they are not accessible to them. However, the trustee retains discretion over how the assets are distributed. They may set a dollar amount or specify what can be spent with the money.