Protection from The Court Involvement and High Expenses; keeping harmony in your family are most important reasons to have a trust
Of course, the last thing you ever want to happen, is that courts will make decisions about how your property is distributed and take a share of it in the process (this is called “probate”). A trust is key to avoiding expensive probate and make the process of distributing your property as you intended upon your death; these two reasons to have a trust will be appreciated by your loved ones and will give you peace of mind in in the present time knowing that everything is arranged properly.
Probate is a court proceeding to distribute your property after your death.
The cost of probate is expensive and can be avoided (if you have a trust in place).
Statutory attorney commissions are:
4% of the first $100,000,
3% of the next $100,000,
2% of the next $800,000,
1% of the next $9,000,000
and executor fees of the same amount.
Let look at the real examples for the cost of probate:
$400,000 estate costs $22,000,
$800,000 estate costs $38,000.
Keep the property in your family and Protecting it from Immature Judgment are important reasons to :
All children reach maturity differently. You should be in control of when your child will be given the responsibility to manage your money. To gain this security and control, you can put your property in a trust for the benefit of the children and give them access to your money at the time and process of your choosing; when you believe they are ready. That age could be 25, 30, 35 or any time you believe is best. You may do it in stages if you prefer.
If you do not want your property to fall into control of your in-laws, you may want to consider setting up a trust in a way will prevent your in-laws from getting your property.
Making possible to inherit the property and keeping the Government Benefits
If you have a child with a disability and he/she is receiving SSI or SSDI, there are other reasons to have a trust. For disabled children you should consider a special needs trust to ensure that they will be the beneficiaries of your trust inheriting your property and not lose their government disability benefits.
Protection from Delays
Making the process of distribution your property faster is among other good reasons to have a trust. A probate involves appraising the property, paying debts and taxes, and distributing the remainder of the property according to the will. An average simple probate takes between 9 months and 2 years to complete. When you make a living trust, your surviving family members can transfer your property easily and quickly.
Protection in Health Emergencies:
There are some healthcare related reasons to have a trust.
A Health Care directive and Durable Power of Attorney order can protect you while you are not able to make decisions because injury or illness. If you are experiencing a serious medical emergency, such as a stroke, work injury, car accident, that makes you unable to communicate your desires or understand and appreciate the rights, duties, and responsibilities created by your decisions, you need to be sure that someone you trust is given the responsibility to make decisions for you. You need to choose that person you trust in advance instead of relying on the court choosing someone you would not choose.
Protection from Taxes:
Reduce your estate taxes and gift taxes are other reasons to have a trust. If your estate exceeds the federal estate tax exemption, there are special types of trusts would be used for your estate planning portfolio.
Protection from Creditors:
Preserving your family privacy, security and protecting your assets from creditors are wise reasons to have a trust. In order to protect your assets from creditors you can set up an Asset Protection Trust in an offshore jurisdiction.
Protection your children from losing your money
In addition, if you anticipate that your children might have alcohol, gambling or drug problems and would not be able to use your money as wisely as you wish, you can set up a trust that gives a responsible person discretion to distribute to them from the trust with wise and sober judgment.