Reduce Tax Exposure While Providing for a Variety of Circumstances
Properly prepared trusts can assist with reducing exposure to taxes, avoiding probate, providing for the ultimate disposition of a person’s assets, planning for incapacity, and providing for the care of minor beneficiaries. There are all types of trusts, including charitable trusts, life insurance trust, irrevocable trusts, and revocable trusts. Each of these trusts serves a different purpose but the most common trust is a revocable trust.
Why should I consider creating a revocable trust?
A living trust is one of the main ways to avoid probate. One of the purposes of probate is to determine the disposition of the property you leave at death. Since the trustee of your revocable trust owns that property, there is no need for probate because the trust lives on after you pass away.
Will a revocable trust help me avoid creditor claims?
No, creditors can attach trust assets held by a revocable trust. Generally speaking, the only way to receive creditor protection is through an irrevocable trust.
Will a revocable trust make a Will unnecessary?
You will still need a simple Will to take care of assets you fail to transfer to the trust or that you acquire shortly before your death. If you pass away as a result of someone else’s negligence, a probate would still need to be opened so that someone could sue the negligent person on your behalf and the Will would provide your directions as to who should serve as your personal representative in the probate action.