Planning for the future is important, and establishing a trust for your assets is one of the best ways to ensure they are distributed to family, friends, and loved ones according to your wishes. At Rountree Losee, our Wilmington trust attorneys are here to help you navigate the complexities of estate law, and carry out your wishes to ensure your loved ones are provided for.
What Is The Difference Between A Trust And A Will?
A will or last will and testament, is a document that outlines how you want your assets to be distributed when you die, as well as other last wishes. It takes effect once you pass away.
A trust is different. This is a legal fiduciary arrangement, where a third party known as a “trustee” holds and manages your assets pursuant to the terms of the trust. Unlike a will, a trust can take effect before you pass away.
What Is The Purpose Of Creating A Trust?
Trusts have several purposes. They enhance privacy because trusts are not filed with the probate court at your death. Due to trusts not being filed with the probate court at your death, they can eliminate or reduce the probate process. They can reduce estate taxes. Trusts can help you protect your assets from creditors or predators. Trusts can also assist you with qualifying for public benefits such as Medicaid in your later years.
How Does A Trust Work?
To establish a trust, you need to draw up a variety of legal documents. From there, you transfer ownership of your property to a third-party fiduciary known as the “trustee”, who manages the assets pursuant to the terms you set out in your trust. While these documents can be done on your own, we suggest you use the assistance of a Wilmington trust attorney.
Who Should Consider Creating A Trust?
Generally speaking, trusts are a better option than wills for people who meet a few criteria. You may want to consider a trust if you:
- Own a home or property, particularly one in a different state;
- Your estate and assets are worth $200k or more;
- You wish to protect the privacy of your assets;
- You want to simplify the probate process for loved ones after you pass away;
- You have estate assets that will be taxable when you pass away; or
- You want to protect your assets from creditors or predators.
Different Types Of Trusts
There are a lot of different types of trusts. The most common types of trusts are revocable trusts, irrevocable trusts, and testamentary trusts.
Each trust has its advantages and disadvantages. A Wilmington trust attorney can explain each one in more detail and ensure you choose the right type of trust.
What Can You Add To A Trust?
Almost any type of financial asset or real property can be added to a trust, including cash bank accounts, investment accounts, non-qualified annuities, stocks and bonds, business interests, real estate, and much more.
The Importance Of Working With A Wilmington Trusts Attorney
Working with a Wilmington trust attorney at Rountree Losee helps you draw up a trust that will secure your assets, protect your interests, and ensure that your wishes are followed during life and after you pass away.
As experienced trust lawyers in Wilmington, we will work closely with you to protect your assets, your estate, and your loved ones.
Contact Rountree Losee For A Consultation Today!
Estate planning is important, and creating a trust is one of the best ways to protect your assets and safeguard your estate. Contact Rountree Losee online or give us a call at 910-763-3404 to request an initial consultation.