How silent trusts can help people plan

| Nov 6, 2018 | Trusts |

People in Georgia who are thinking about their future often are concerned with how best they can leave a legacy to their children or other loved ones. Many people opt to create trusts, as they allow property to pass outside of the probate system and can also provide significant tax benefits over the years. However, some worry that if their children know from an early age that a substantial trust fund will be waiting for them, they will be less motivated to achieve academically and in their careers.

When a trust is created, the trustee has a duty to notify the beneficiary about the trust and its administration, even if the beneficiary will only receive the funds at a future date. Many people want the estate planning and tax benefits that come with early creation of trust funds, but worry about the potential of negative social and familial effects. This is one reason why many people opt to create silent trusts. When someone creates a silent trust, he or she explicitly waives the duty of the trustee to inform the beneficiaries. Typically, the silent period is set to last for a fixed number of years or until the beneficiary reaches a certain age, usually 25.

People may also opt for silent trusts because they want to avoid complicated conversations about family wealth or delay them until some future time. Some people may be concerned about issues of privacy, especially with the potential to inadvertently expose information on social media.

When people think about how best to plan to transfer their assets to their loved ones, they have a variety of options that can help them achieve their goals. An estate planning attorney might be able to advise people on the best options to meet their needs as well as creating the documents to make their plans a reality.