The benefits of using a Trust
Trusts are mighty and valuable tax, investment, estate planning and financial planning instruments. You may think they are too expensive or only for the wealthy. Truthfully, the less assets you have the more you will need a trust so you do not lose a large percentage through the probate process and the longer the assets will be tied up before your loved one are able to benefit from them. With a little guidance you can learn can acquire the understanding you need to benefit from these instruments. Issues such as avoiding creditors, avoiding probate, avoiding taxes, holding insurance, transferring ownership of your business, education planning and even charitable distributions are important when planning your estate.
WE WILL HELP YOU PLAN YOUR ESTATE NO MATTER HOW SMALL OR LARGE YOU MAY FEEL IT IS.
We will help you simplify your goals.
We will help you recognize the assets you should strategize with.
We will help you recognize the people you want to benefit from your trust.
Finally, we will help you decide what instruments are needed to reach your objectives based on the people and assets concerned.
CALL TODAY, our firm will make sure the correct trusts and more specifically the correct provisions within the trust included to meet your few or many needs. Again, we are here to help serve your most important needs: Avoiding probate, protecting your children, managing your business assets, avoiding creditors, avoiding taxes, making sure your family is provided for in case you become ill.
FURTHER YOUR EDUCATION:
Every Trust consists of 5 basic components:
First there is the Grantor; this is a person who creates the trusts and transfers their property into it. Second there is the Trust Property. When the grantor puts his or her property in the trust this completes the process of funding the trust. If the trust is not funded it is basically worthless.
The third component is a Trustee. The trustee is the person named by the grantor to be responsible for administering the trust. The Trustee in many cases may actually be the Grantor or some trusted friend or family member of the Grantor. The Fourth component is a beneficiarie(s). The beneficiary is the person(s) who will receive the property or benefit from the property.
Lastly the purpose of the trust, which is made up of the provisions directing the trustee how to disseminate the property in the trust, must be legal.
More on the powers of the Trustee:
Trustees can be granted the power to sell, rent, manage or operate the assets of the grantor. If the grantor has set up Revocable Living trust he or she may maintain the power as the primary Trustee during their lifetime.
Choosing the correct Trust for your estate:
Based on your financial, business and estate planning goals our firm will direct you to the right products to make sure your objectives are met.
Transferring assets into your trust.
- Real estate. A quit Claim deed or Gift Deed is the normal way to transfer property. Our firm can help you with this for $265. The benefit of deeding property into a trust is when the beneficiary receives a stepped up basis which can put the beneficiary in the position to pay 0 taxes upon selling the real estate. However due diligence should still be completed before deeding the property to the trust. See if you need a new title insurance policy; be sure the fire insurance and liability insurance have the trustees name on the. Make sure you will not have to pay exorbitant mortgage fees and taxes as well as transfer taxes and recording fees.
- Banking. We will provide you with the necessary forms and signatures cards needed to fund your trust for $60
- Securities. We will get you the necessary transfer forms for your securities for $6o
- Corporations, LLCs and Partnership interests. Our firm will review any partnership agreement between the owners and prepare the Stock or interest transfer agreement for $220
- Other Tangible Personal Property. We will prepare the Gift declaration document for $55.
Your right to revoke or change your trust
A revocable living trust that you set up allows you the right to amend it or cancel it at any time. This allows you tremendous flexibility in setting up your estate plan and amending it from time to time to meet your current needs.
Irrevocable Trusts (are they for you?)
-Can you and your loved ones live in comfort even if you cannot touch the assets you have put in your irrevocable trusts.
-Be sure your trustees are dutiful, possibly pass on a particular person and look for a professional institution.
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