Reasons to Set Up a Trust
There are a ton of different trust types that you could set up. There are family trusts, insurance trusts, cottage trusts, Henson trusts, irrevocable life insurance trusts, qualified domestic trusts, spendthrift trusts, charitable remainder trusts, purpose trusts, etc. No matter the type of trust you need there are several benefits you will receive from one of these trusts. The attorneys at Robinson, Seiler & Anderson Law Firm in Provo, Utah can help you with setting up the trust that is perfect for your needs. The benefits you could receive are listed below.
If you are worried that your beneficiaries don't have the capability or desire to manage the assets you'll be giving them after you pass, having trustees manage those assets can solve the problem. You may want to manage the assets while you're alive, but when you're gone, a trust can provide proper management if necessary.
Protects your Assets
If you want to protect assets from creditors, marriage breakdown or from those who might influence your beneficiaries, a trust can be an effective. Talking with one of the attorneys at Robinson, Seiler & Anderson can help you in creating a trust that covers all of your assets and gives them the protection they need.
After you pass it is common for all of your assets to be probated. Assets held in a trust fall outside of your estate and, therefore, do not require probate or the payment of probate fees. When being probated your will becomes a public document, along with the value of the assets that formed your estate. A trust agreement, however, is a private document and can keep information confidential. Some people replace their wills with a trust.
Saves on Taxes
It's possible to use a trust to access the lifetime capital gains exemption (LCGE) or the principal residence exemption (PRE), even where it would otherwise be impractical to do so. It's also possible to split income with lower-income beneficiaries by allocating income of the trust to those beneficiaries to be taxed at their lower rates (though there are some exceptions). In addition, testamentary trusts, created in your will upon your death, have in the past allowed beneficiaries to save tax by taking advantage of the low graduated rates of tax available to those trusts.
To find out how and what trust will work best for you and your family you will want to meet with one of the attorneys at Robinson, Seiler & Anderson Law Firm in Provo, Utah.