If you are thinking about making an estate plan, you have probably heard of trusts. A trust isn’t just for extremely wealthy people though. There are a few good reasons to set up one of your own when making an estate plan and a Bergen County trust lawyer can help you figure out which kind of arrangement works best for you.
What Are Some Advantages of a Trust?
Having a will is great, but a trust can offer a few things that this document does not. Some advantages of going with this arrangement include:
The probate process: When you have a will, your assets can only go to your heirs after going through the probate process. This involves the courts and can cost your estate some money in court fees. The assets in a trust do not have to go through probate though, making the transfer to your beneficiaries much simpler.
Privacy: Because your assets don’t have to go through probate, that means that there won’t be a court record about your assets and what was passed down to who. A trust can offer you a bit more privacy than a will would on its own.
Saving on estate tax: If your estate is large enough to be subject to an estate tax, certain arrangements using trusts can help you reduce your tax liability.
Protection from creditors and lawsuits: Depending on how your trust is set up, it can protect your assets from others and preserve them for the next generation.
What is the Difference Between a Revocable and an Irrevocable Trust?
There are different types of trusts, but one of the biggest decisions to make is whether you want yours to be revocable or irrevocable. A revocable trust allows you to change its rules and withdraw assets as long as you are alive. An irrevocable trust cannot be altered and its rules cannot be changed. This arrangement essentially removes those assets from your estate.
Why would you want to give up control over any of your assets? There are a few reasons why, but most choose this arrangement because they want protection from creditors or lawsuits. Someone cannot come after assets that are no longer a part of your estate.
Do I Need a Lawyer?
We recommend that you talk to a lawyer when you want to set up a trust. This process requires a bit of paperwork and financial and legal knowledge. You do not want to set one of these up incorrectly because that can create headaches for your loved ones later on.
Contact Our Estate Planning Attorneys
If you want to learn more about trusts and all of your estate planning options, contact the Law Offices of Colin M. Quinn. Schedule a consultation with our team and learn more about how experienced estate planning lawyers can make this process simple and straightforward for you and your family.
