Must Read About Why You Hire a Trust Attorney?
You must have heard the word trust plenty of times, but have you ever stopped to consider what it means? Suppose you have some assets, property, or anything of monetary value that you would want somebody to benefit from after your death. In that case, you need to set up a trust to enable a third party or an individual to hold your assets and property safely for a specific time. This fiduciary arrangement consists of three parties: trustor, trustee, and beneficiary. It is better to hire a trust attorney while forming a trust as they can offer your legal advice, assist you with the documentation and provide you with any information you require during the process. These are some reasons behind hiring an attorney.
Helping you decide the type of trust
Before setting up a trust, you must know what type you want to set up. The most common types of trusts are revocable, irrevocable, and testamentary. Your attorney can explain the meaning of each of these and which would be the most suitable for you. For example, most people execute a revocable living trust because they can modify or cancel them whenever they want during their lifetime. However, once the trustor dies, the trust becomes irrevocable and cannot be changed by anybody. It offers several benefits, including decreased probate costs, specific healthcare directives provided by the trustor, and easy access to assets after their death.
Proving the necessary information
A trust might run into legal complications if it does not contain the necessary information such as the trustor and trustee’s name, list of beneficiaries, and disbursement instructions. You also need to know what assets you should or should not mention in the document. Some of the belongings you must include are your real estate property and house, bank accounts, investment accounts, bonds, and money markets. On the other hand, you should exclude assets such as 401(k)s, deferred compensation accounts, life insurance policies, health savings accounts, medical savings accounts, and annuities.
Avoid the probate process
Most people establish trust because it helps their family members and relatives avoid the probate process. Probate refers to a legal proceeding in which the court reviews a will to determine its authenticity validity, identifying the trustor’s heirs or beneficiaries, determining the value of the decedent’s property and their financial responsibilities, along with the transfer of their property to the beneficiaries. In most probate cases, the court appoints an executor (if the decedent left a will) or an administrator (if there is no will) as a personal representative to collect the assets, settle any remaining debts and expenses, and distribute the remaining property to the beneficiaries under the court’s supervision. Such cases usually take nine months to one year but may extend for an extended period in some circumstances. Your probate lawyer can help reduce family conflicts, settle outstanding payments, speed up the probate process, help you fulfill your legal responsibilities, resolve any tax issues and file the various forms related to the case.
Help you set up the trust
You will require your attorney while setting up the trust fund because there are several requirements you must fulfill in the process. For example, you should manifest an intention to create the fund, have some property and name a beneficiary (not applicable for charitable trusts). The law will only consider the document valid if signed by the trustee and the settler or their agents.
Inform you about the tax benefits
Setting up a trust might also exempt you from various taxes, which your attorney can tell you about. An irrevocable trust will let you benefit from transfer tax benefits because although you will pay some money under the “gift tax requirements” during your lifetime, your beneficiaries will be exempt from estate tax after your death.
Hiring a trust attorney will save you the hassle and inconvenience of dealing with the myriad legal complexities and documents involved in the process. You will benefit from their legal expertise and ensure you create a beneficial trust for yourself and your loved ones.
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