A will allows you to decide who should receive your property after you’re gone. However, in some cases, you might want more control over your assets. Living trusts are valuable estate planning tools that let you bypass probate, and they also provide a wide range of other benefits. The following guide answers some common questions you might have about trusts so you can determine if it's the right move for you.

A Guide to Living Trusts

What is a living trust?

A trust is a separate legal entity that takes legal ownership of your assets while you’re still alive. Since they technically don’t belong to you, assets held in trust don’t have to go through probate when you pass away, which saves your heirs a great deal of time and money. Living trusts can also be dissolved or changed at any time, which makes them a flexible estate planning tool.

What happens to assets held in trust after I pass away?

When establishing a trust, you might decide that someone else should be named as a beneficiary in your place. You might also stipulate that the trust should be dissolved and its assets distributed to your heirs according to instructions in the founding documents.

A trust also allows you to set conditions for those inheriting your assets. For instance, you may require that your heirs only receive a portion of the trust’s assets when they graduate college, buy a house, or complete a substance abuse program.

Are assets in trust immune from tax?

Since you still have control over the trust, the assets it contains are still counted as part of your estate for tax purposes. However, some types of trust do offer tax advantages for married couples. An estate planning attorney can guide you through the complex guidelines to determine whether a trust will offer tax benefits.

Who should consider establishing a trust?

Living trusts are ideal for those with complex assets or who own property in several states. Bypassing probate allows heirs to receive their inheritances immediately, rather than waiting months or years.

Trust documents are also not matters of public record, unlike wills, which makes them popular options for families who prefer to protect their privacy. You may also decide to establish a trust to forestall legal challenges from family members who may not accept your estate planning decisions.

Families across Chillicothe, OH, turn to Rutherford Law Office when they need assistance with estate planning matters. This firm can help you navigate the confusing and overwhelming process, guiding you through every step so you have a full understanding of your end-of-life plan. Their attorneys have extensive experience and will help ensure that your wealth and loved ones are protected. Learn more online, or call (740) 775-7434 to schedule a consultation.