Trusts are a key instrument in Estate Planning, and they provide many advantages to both the grantor and the beneficiaries of the trust.
The main reason people set up trusts is that they provide a legal instrument to protect and manage property. Some advantages for setting up a Trust are:
- Trusts can achieve tax savings for the Estate.
- Trusts provide asset management (especially if beneficiaries are minors or incapacitated in any way).
- Trusts allow the grantor to control the property, even after death.
- Trusts provide privacy—they are discreet contracts between two parties which is rarely part of the public record.
- Trusts may work to eliminate the need for guardianship.
- Trusts allow flexibility that is not available with direct gifts of property.
Important issues to look at when deciding to use Trusts:
- Ability of beneficiary to manage property.
- Legal capacity of beneficiary.
- Possibility of beneficiary becoming incapacitated.
- Possibility of divorce for beneficiary.
- Possibility of huge creditors' claims.
- Expense of creating and managing Trusts.
* StateTrust does not provide fiduciary or trustee services, nor does it act as a fiduciary or trustee. StateTrust only serves as an intermediary in providing introductions to legal counsel and licensed trust companies that can provide fiduciary and trust services. Our services consist of managing the assets held in such trusts and legal entities.
Why people build Wealth?
- Financial security for them and their heirs.
- Purchase of Consumer products (cars, clothing, etc.).
- Purchase of Non-consumer products (real estate, art).
- Charitable donations (Cultural organizations, conservation, human services, health care, international relief groups, religious groups, youth organizations, and educational institutions).
What Trusts offer:
- Right to income or other regular payments.
- Right to be part of investing decisions.
- Right to use Trust assets.
- Right to control allocation of assets to others.
- Include provisions for early termination (could be based on discretion of Trustee or Trust protector, beneficiaries' powers of appointment).
- Different jurisdictions and legal frameworks are available.
* StateTrust does not provide fiduciary or trustee services, nor does it act as a fiduciary or trustee. StateTrust only serves as an intermediary in providing introductions to legal counsel and licensed trust companies that can provide fiduciary and trust services. Our services consist of managing the assets held in such trusts and legal entities.
Trust Topics