What Are Some Benefits of a Trust?

Benefits of a Trust

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As you create your estate plan, you might discuss trusts with your attorney. A trust is something that is used to minimize your estate taxes, but it can benefit you in other ways as well. The trustee, or the individual who holds your assets, does so on behalf of your beneficiaries. The trustee would see to your wishes, ensuring they are handled in the way you specified in the trust documents. If you are seeking an estate planning lawyer in Bloomington, IL, then you could consider a firm like Pioletti Pioletti & Nichols to help you out with your estate planning.

Protecting Your Legacy

One benefit of creating a trust is that it protects your legacy if constructed properly. For example, your heirs might have debt that is being pursued by creditors. When you die, the creditors could go after the inheritance your heir gained from your death. With a trust, you can place specific terms on the trust so it is protected from those creditors.

Another way a trust protects your legacy is by dictating how a particular heir can receive his or her inheritance. Perhaps you have three children. Two of them are trustworthy with large sums of money, but one of them has a drug addiction. You could put that one child’s inheritance in a trust with instructions on when and how your child would receive the money to use as a benefit for his or her life.

Controlling Your Wealth

A trust can be very specific, so you are in total control of who gets your money and when. A revocable trust can also be created. This is a document that gives you access to your money while you’re still alive but has a specific heir or heirs attached to it. Any money you haven’t used from that trust would go to the heirs after you have passed away.

Securing Your Privacy

If you don’t want your financial situation on the public record, a trust is the way to go. Probate is available to the public. If that bothers you, or if you have any concerns about the public finding out where your money went after your death, creating a trust might be in your best interest. You can protect the privacy of your wishes, and you can also protect the individual who receives your money. Trusts also sometimes reduce court fee costs and taxes as your estate is distributed.