Trusts ~ An estate tool for everyone

Anibal-Group-RealtyNetWorth-Dog-In-LakeOnce you’ve physically or mentally passed to the next realm, you will leave some situation for family. Complicated interactions, probate and extra taxes may be the gift you leave. Or you may set up a trust.

A trust can greatly simplify things. There are many types used for various situations. The most common is a revocable living trust. It lets you:

  1. specify how your estate will be distributed
  2. can avoid probate – a lengthy, costly & emotional process
  3. minimize arguments

Joint property ownership, or payable-on-death transfers or accounts can also avoid probate. Be careful about the taxation consequences of these.

The cost will vary depending on your situation, but $1,500 to $3,000 may cover the basics of:

  • your trust
  • a will
  • medical directive and
  • a power of attorney

List out for assigning all of your assets to the trust that you wish to avoid probate. Include wording for any additional assets so they may ‘pour over’ into the trust.

Retirement accounts and insurance policies generally aren’t subject to probate.

While alive, you have control to change, or even revoke it. Revocable trusts don’t require a tax return. This type of trust is part of your estate & won’t offer much tax benefit or asset protection. An  irrevocable trust can, but once set up is difficult to alter.

After passing:

Further benefits are clarity and control. You may detail how your assets are distributed to beneficiaries and avoid much family conflict. For younger ones, a trust can outline ages and conditions they receive what part of their inheritance.

Special needs trust:
A special needs trust is a form of revocable trust designed for dependents with disabilities. Social Security allows disbursements without disqualifying them from Social Security, Medicare, or other benefits.
Private or public wishes?   
If you use probate things can complicated since probate files are public record, trusts are not. As always, seek legal, tax, and financial feedback from advisors in all areas.


* The above is for informational purposes only. Anibal Group LLC is not offering professional advice & this article is not to be considered advice specific to your situation. Your decisions should involve professionals of your choice re: insurance, legal, banking/ lending, structural/ property condition, and other transaction significant matters. We can offer referrals.

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