How Can Trust Help You More Than A Will?

When first getting started with asset management and protection, sometimes people wonderwhat the differences are between a will and a trust. Law experts consider both to be essential tools of estate planning, which can dictate how assets pass on to beneficiaries after the death of the estate owners. While both of them have similar purposes, using a trust has distinct advantages.

Here is why you should think about setting up a trust rather than just drafting a will –

A will is incapable of avoiding probate, but if you set up a trust today, your heirs should be able to avoid the hassles of probate. Probate is the ubiquitous process that changes the ownership title on the assets once the owner is deceased. In the absence of a trust, the family members of the deceased have to file a petition with the probate to gain access to his or her assets. It is usually a long and tedious process that is harrowing after the loss of a loved one.

  • Trusts successfully reduce estate taxes

A traditional will is incapable of lowering the federal estate taxes. A trust is the only estate planning tool that can cut back estate taxes. Every property owner should create trusts with the help of reliable and experienced estate attorneys to prevent the lion’s share of their assets from going to their state’s commonwealth! Newly married couples can save significantly by choosing smart estate tax planning. Visit https://www.keaneattorneys.com/ to learn more about tax saving trusts, and many other options at your disposal.

  • A trust is capable of providing creditor protection

It is a common worry among parents that the inheritance they leave for their children might fall into the clutches of their creditors. Whether it is a divorcing spouse, a bankruptcy lawsuit or an outstanding credit card bill, their inheritance can face this threat when the beneficiaries receive the assets via a will. When an estate owner sets up a trust, the ownership of the assets rests with the trust only. The recipients can access the assets according to the directions the owner leaves with the trust. The owner can allow the beneficiary to act as a trustee, thus allowing him or her to manage her inheritance.

  • You can set up a trust to protect the governmental benefits for an individual with disabilities

If you have a beneficiary with disabilities, a trust can help you protect the governmental benefits this person receives. A will is incapable of doing the same for someone, who receives government aid. If you only have a will, this can put your beneficiary in a difficult place, where he or she might end up losing government benefits as a result. They might have to transfer their rightful inheritance to a state-managed trust. It is advisable to set up a trust unless the estate is significant enough to make up for the loss of all governmental aid he or she receives right now.

These are just some of the ways a trust is different from a will. Trusts can seem complicated if one is unaware of the ins and outs of estate planning. However, selecting the right estate attorney can help anyone create trusts that provide numerous benefits, including peace of mind, added flexibility, tax savings, many levels of asset protection, a much easier transfer of assets to beneficiaries and much, much more.

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