There are a number of reasons to include a trust in your estate plan. Where a will includes a directive for the distribution of your assets, a trust is a tool that can hold assets for the benefit of a beneficiary. If you're considering a trust, you should talk with a Chandler, Arizona Trust Lawyer to determine whether or not one might be right for you.
Making Use of a Trust
A testamentary trust only takes effect after you have passed away. It allows you to pass along assets, property and/or income and may be subject to conditions of your choice. A testamentary trust will be administered by a trustee in a way that is appropriate and responsible. Testamentary trusts are often most beneficial when there is an heir who is a minor, is disabled, or otherwise may not be able to manage any property you leave them on their own.
A living trust can be put into effect at anytime in your life. There are numerous practical and tax-related benefits that accompany having some of your property, assets and/or income managed by a living trust. Similarly, you may gift your property or income to others during your lifetime through a living trust, subject to conditions of your choice. For example, you could provide for a grandchild’s education through a living trust. Significant, valuable assets may also be placed into the trust so they can be immediately distributed after your death, and without going through the probate process. If you have questions about testamentary and/or living trusts, do not hesitate to connect with a Trust Lawyer Chandler, AZ today.
Trusts for Other Purposes
A trust can be used for other purposes behind distributing assets and holding property. As a Chandler, AZ trust lawyer might explain to you, there are several types of trusts including:
- Special needs trusts - A trust that can provide for a family member who is disabled, but at the same time protect their government benefits.
- Gun trust - A trust that can hold guns and related weaponry, and one that is ideal for anyone who has a gun collection.
- Asset protection trust - A trust that can safeguard assets and resources from creditors.
- Spendthrift trust - A trust that protects assets from young adults who may not understand money management.
- Bypass trust - Ideal for wealthy families who would like to save on taxes and safeguard the surviving spouses' assets.
- Charitable remainder trust - A trust that helps with tax deductions and charitable gifts.
Reducing Your Taxes with a Trust
There are a number of strategies that can be utilized to reduce your estate taxes. Which will be best suited to you largely depends on the state you are a resident of, the location of the assets, your estate's worth, and so forth. A Chandler, AZ trust lawyer can review the details of your circumstances and help you to decide which trust is right for you. For example, in New York, a Bypass trust is commonly employed for families that have a net worth of at least one million dollars. Whereas, in other states, a dynasty trust may be preferred. A lawyer might also recommend gifting strategies. These are a good way to provide for your heirs while avoiding taxes. There are annual gifting limits, and these can be explained to you by an estate planning lawyer for trusts.
If you're interested in creating your own trust, please schedule a consultation with the legal team at Citadel Law Firm PLLC today. We look forward to speaking with you. Call (480)565-8020 or click here to schedule your free consultation. Our Trust Attorney in Chandler are looking forward to help you take care of yourself and all your loved ones. Our Estate Planning Attorney Chandler always offer you a free consultation, we need to always make sure that we are the right attorney for you. Call today, we are here to help you.