Just Trust: A Primer

by Neil S. Siskind

               What are the advantages of Trusts over Wills you ask? 

               Among other things, Trusts can be used to protect assets, avoid estate taxes, avoid Probate or retain control over assets and monies. Trusts can be more costly than Wills to set up and require the creator to meet certain legal technicalities. On the other hand, a Trust can save an estate time and money upon death of the creator. So while the creator of a Trust pays more to create the Trust, his or her beneficiaries will likely end up with more than if a Will is used because they save on costs following death. 

               Trusts avoid Probate. Probate is a legal process that must be followed after death. It takes months, can be laborious and requires an attorney. The money for the attorney comes out of the assets of the deceased and the beneficiaries.

               By creating a Revocable or Living Trust, there may be no Probate process at all. Irrevocable Trusts can avoid estate taxes and provide asset protection from lawsuits. This is because once assets are transferred to a Trust, they no longer belong to you. But you also lose the ability to get those assets back (you would need consent of all parties involved). But again, the benefit of this is that your assets are protected from creditors and taxes. Revocable Trust do not offer the same protections. 

               Trusts can also provide for the manner in which your assets should be handled if you become incapacitated. 

               So if you are planning your estate, no matter how large or small, discuss with your attorney the best options for you based upon your needs and plans. There are various possibilities available to you when it comes to organizing your assets in case of death, injury or illness. The best time to learn about your options and make decisions is when you are healthy and vibrant and your mind is clear and alert. Collecting assets and making decisions while under physical stress can be overwhelming and leaves room for fast and poor decisions. 

               Contact The Siskind Law Firm to discuss your options and create your Will or Trust today.