Why trusts are useful in an estate plan

| Jun 26, 2019 | Trusts |

When people in Georgia think about planning for the future, they may be concerned about how they can best ensure that their assets are distributed according to their wishes. They may also want to do everything they can to ensure reliable support for their loved ones. As a result, many people turn to trusts as part of the estate planning process. Trusts offer a greater level of flexibility, customization and control than other estate instruments. In addition, they do not need to go through the probate system, so they do not become public record, offering more privacy in the process.

People can create several different types of trusts depending on their reasons for creating the instrument. A trust essentially is a legal body created to hold property that originally belonged to the creator. It becomes the property of the trust when the trust is funded. The trust is to be managed by a trustee for the benefit of a named person. In some cases, people may opt for revocable trusts that can be cancelled while the creator is alive; others may create irrevocable trusts that cannot be changed. People often opt for irrevocable trusts in order to provide greater tax benefits or advantages when dealing with creditors.

There are several other reasons why people may make trusts a part of their estate plan. They can be structured to provide protection for beneficiaries, especially if minors are involved. Trusts can allow people to bequeath gifts to minors while ensuring that a qualified trustee manages them until the young person is old enough to receive the funds in full.

People who are considering their goals for the future may find trusts useful in developing a comprehensive estate plan. An estate planning attorney may develop trusts, wills and other documents that reflect a person’s vision for the future.