Estate planning’s primary goal is for you to pass down assets to your beneficiaries. While many people don’t think about this aspect of estate planning, finding options to ensure as much as possible finds its way to them is crucial.
Certain estate planning options, such as trusts, have many benefits to consider. Thinking through all of these may help individuals to make decisions that are best for their circumstances.
2 types of trusts
Trusts are classified as either revocable or irrevocable. The primary difference between these is that revocable trusts can be altered or canceled, but that’s not the case for irrevocable trusts. Another key difference is that the creator retains control of the assets in a revocable trust, but not an irrevocable trust.
Trusts offer some protection from taxes. By finding options that reduce taxes, more of the assets can be passed on to beneficiaries. Typically, irrevocable trusts offer more of a tax benefit than revocable ones. Irrevocable trusts also provide protection from the creator’s creditors.
All trusts provide privacy benefits. They don’t have to go through the probate process, so beneficiaries are able to keep the terms of the trust and what they got from it private. Additionally, this means they may be able to get what’s due to them faster and with less expense.
Every aspect of the estate planning process must be carefully considered to ensure that it accurately reflects your wishes and provides the best possible care for your loved ones. Working with someone familiar with these matters is beneficial so you can explore the options and get everything set so you have peace of mind.