|Advantages of Trusts|
Why you might consider discussing trusts with your attorney
What is a trust?
A trust is a legal entity that is
created for the purpose of transferring property to a
trustee for the benefit of a third person (beneficiary).
The trustee manages the property for the beneficiary
according to the terms specified in the trust
Trusts may be used to minimize federal
estate taxes for married individuals with substantial
Trusts provide management assistance for
Contingent trusts for minors (which take
effect in the event that both parents die) may be used to
avoid the costs of having a court-appointed trustee.**
Properly funded trusts avoid many of the
administrative costs of probate (e.g., attorney fees,
document filing fees).
Generally, revocable living trusts will
keep the distribution of your estate private.
Trusts can be used to dispense income to
intermediate beneficiaries (e.g., children, elderly parents)
before final property distribution.
Trusts can ensure that assets go to your
intended beneficiaries. For example, if you have children
from a prior marriage you can make sure that they, as well as
a current spouse, are provided for.
Trusts can minimize income taxes by
allowing the shifting of income among beneficiaries.
Properly structured irrevocable life
insurance trusts can provide liquidity for estate settlement
needs while removing the policy proceeds from estate taxation
at the death of the insured.
*This is particularly important for
minors and incapacitated adults who may need support,
maintenance, and/or education over a long period of
**With a court-appointed trustee, the
court must be petitioned each time funds are needed for the
minor. In addition, the assets are generally invested in very