Posted by Fred Lake

Reason Why You Need a Trust

Reason Why You Need a Trust

You could be one of those that says, "I don't need Trust, I don't have a property that doesn't need sophisticated planning. It's costly and complicated. So I don't need a trust.  You even ask:" Why should I need a trust? "

I will describe in a few words why you will benefit from a trust. First of all, let me explain what trust is. A trust is documentation that allows you to transfer your personal property lawfully and real property to your family member, heirs and loved ones after your death. And all this without requiring an expensive and complicated legal process called the probate.

You could think of your safety when creating your company. You and your spouse will be the only manager and employees of the company. All your belongings now belong to your company, not to you individually. You still have full control of your company's instructions saying that, in the event of death or disability, you have appointed an alternative person to "manage the company." This is the administrator of your successor.

Since your assets are now named after the company or on behalf of your trust, there is nothing in your name that would require probate. Probate is the legal procedure to change the owner of your assets after your death. 

This is some reasons why you need a trust:

Your Trust Prevents Probate

 Instead of paying thousands of dollars in inheritance costs, legal fees, and fees, most of your resources will be distributed to your heirs after your death. This saves money.

Stay In Control

Your trust document contains all guidelines for managing your assets and the use of your funds in the event of death or disability. Even when he is unable to handle his business, he ensures that he is treated as he wishes. And as long as you can, you still have full control to buy, use, spend or even donate your property as determined. You can sell the property, change your beneficiaries or your trustee, or even revoke your trust if you choose to do so.

It Takes Less Time

Instead of taking months or years with a trust, your property can be liquidated within a few weeks of your death. There are no judicial delays or judicial interference. In the situation of a disability, your successor immediately takes control of your property to your advantage. No judicial protection will be required.

Your Privacy Is Maintained

Trust is private. If you become disabled, it will remain a private family affair. After your death, it is not necessary to insert paper advertisements to invite creditors to lodge complaints, challenge your will or inform family members against you. Your beneficiaries do not need to become public.

It Is Less Expensive

Don't forget that the costs of succession are part of the cost of liquidating your property with a will. Although a trust is formerly more expensive than a will, due to the elimination of ownership, the total liquidation costs of the property are much lower. Use a lawyer who is competent in real estate planning and not only saves costs, but you will be amazingly delighted by the ease with which you build your trust.

No Special Form Of Government Is Required

With a revocable active trust, a separate tax identification number is not required. Do not submit a separate tax return. Trust is fiscally neutral. Report all your earnings again on your tax return. Your social security number is your reliable social security number. And you must not send any report, agreement or notification to any government agency.

Reduced Maintenance

 Once trust is established, there will be a few changes. Change your trust only when you want to change your beneficiaries or the successor administrator or other details. Occasionally, the government will approve a law that will affect your trust; however, it is rare. An amendment to the trust is usually a simple process.

Special Gifts Are Easy With Live Security. 

If you want to make certain gifts for the chosen people or organizations, you can do it. With security this is easy. Trust refers to a special list of such gifts. In this list, we identify who has chosen as the recipient of certain objects of tangible personal objects, such as jewelry, furniture or other memorabilia. This list is maintained and mentioned in the trust document. You can change it from time to time without changing your security.

Eliminate Or Reduce The Property Tax 

With the special planning incorporated into your trust agreement, it is possible to reduce or in some cases even eliminate any property tax that would be levied in the event of death.

Effective Pre-Wedding Planning 

Any property that you have entrusted to your trust before getting married is and remains the property of that trust. It separates from the property accumulated during the marriage. Just be careful not to mix the assets with those acquired by both spouses during the marriage.

Fred Lake
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