Although trusts can be used in many ways for estate and financial planning, they are most commonly used to control assets and provide financial security for both the grantor and the beneficiaries; provide for beneficiaries who are minors or require expert assistance managing money; avoid estate or income taxes; provide expert management of estates; avoid probate expenses; maintain privacy; and protect real estate holdings or a business.
Richwood Financial can help you evaluate if a trust may be appropriate for your situation.
Contrary to what many people think, trusts are not reserved only for the wealthy. The truth is, people from all walks of life may benefit from a trust.
Benefits of a Trust
Although trusts can be used in many ways, they are most commonly used to:
- control assets and provide security for the beneficiaries (of whom can be the grantor in a revocable trust).
- provide for beneficiaries who are minors or require expert assistance managing money.
- avoid estate or income taxes.
- provide expert management of estates.
- avoid probate expenses.
- maintain privacy.
- protect real estate holdings or a business.
Generally speaking, most people use trusts to help maintain control of assets while they’re alive and medically competent, as well as indirectly maintain control of the disposition of assets if they’re medically unable to do so or in the event of death.
Is a Trust Right for You?
Although not quite as popular as wills, trusts are becoming more widely used among Americans, wealthy or not. Increasing numbers of people are discovering the potential benefits of a trust — how it can help protect their assets, reduce their tax obligations, and define the management of assets according to their wishes in a private, effective way.
Points to Remember
- A trust is a three-part agreement among the grantor, the trustee, and the beneficiary(ies).
- Trusts are either revocable or irrevocable.
- Because you can change or discontinue a revocable trust at any time, the government considers the trust’s assets as part of your estate for tax purposes.
- Irrevocable trusts cannot be altered once they are established.
- There are some basic types of trusts: living trust, qualified personal residence trust, generation-skipping trust, charitable lead trust, and charitable remainder trust.
- Different types of trusts involve different costs for administration and management.
- Richwood Financial can help you determine if a trust will meet your needs.
Trusts Offer Flexibility to Meet Your Needs
Different kinds of trusts are designed to meet different needs and objectives. Contact us to set up an appointment and review all your trust options today.