Are trusts a form of estate-planning planning tools restricted only to the rich and famous? If not, can the regular guy or gal benefit from them? The answers are “no” to the first question and “Yes” to the second.
The Basics of Trusts as Estate Planning Tools
Trusts are legally binding agreements whereby assets are held by a third party, such as a bank, for the present and future benefit of others. Financial assets and property placed into the trust are owned by the trust itself. As stipulated in the trust, they are disbursed to the beneficiaries as set out in the trust document.
There are many types of trusts, including:
Because there are so many different types of trusts, each with their particular nuances and governing legal aspect, that is is important to seek out and work with a wills & trusts attorney Fairfax VA who specializes in them.
How to Set Up Your Trust
Once folks grasp how useful a trust can be for them and their loved ones or coveted interests, they ask themselves, “How do I set one up? In a nutshell, these are the steps that you would need to take:
- Organize key financial and family-related information,
- Seek out the professional advice of a competent trust lawyer to design and construct the trust.
- Ensure that the trust is registered with the U.S. Internal Revenue Service,
- Place your assets into the trust,
- Once created, ensure that the trust is administered properly within its legal guidelines.
Remember, you do not need to have a specific amount of money to create a trust. With the guidance of a professional, you can indeed set up a trust so that your wishes are carried out, even after your passing. You indeed care for your loved ones even after you are gone!