Creating a living trust (a trust into which you place your assets while you are alive) is one of the most powerful estate planning tools available. While many people hear the words “estate planning” or “trust” and think that these issues only are relevant to the very wealthy, many people of moderate means can benefit from creating a trust and placing assets that they would like to pass on into it.
The information below provides an introduction to the benefits of creating trusts. For more information or advice about your particular situation, call the Law Offices of Kenneth P. Carp today at (636) 947-3600 to schedule a free consultation.
What Is a Trust?
A trust is created when the trust creator (the grantor or settlor) transfers legal title of assets to another party, known as the trustee, to hold for the benefit of a beneficiary or beneficiaries. A trust is not a legal entity, but rather a set of fiduciary relationships between these parties. You can serve as both the grantor and trustee of your living trust, which means you can still enjoy and control any assets you place into the trust.
The Benefits of Creating a Trust
Benefits of creating a trust include:
- Avoiding probate – Perhaps the most touted benefit of creating a trust is that assets placed into a trust do not need to go through probate for the trust beneficiaries to receive them. By placing your assets into a living trust, they will automatically transfer to the beneficiaries of the trust without court involvement. This can save a significant amount of time and money.
- A trust provides privacy – Because assets placed into a living trust do not need to go through probate, all asset transfers will remain private. If you use a will to transfer assets, on the other hand, your financial situation will become part of the public record, because the will must go through probate.
These are just two benefits of a living trust. Whether a trust is right for you depends on a variety of factors. Talk to an attorney to determine what estate planning tools are appropriate for your situation.
Call the Law Offices of Kenneth P. Carp Today to Speak With a St. Louis and St. Charles Estate Planning Lawyer
Forming a trust is an excellent way to minimize the issues associated with probate while ensuring that the people you intend to receive your assets get them. Forming a trust, however, is a complicated matter that an experienced estate planning attorney should perform.
With more than 25 years of experience, lawyer Kenneth P. Carp has the skill and knowledge required to draft a trust document that will accurately reflect your intentions and avoid any confusion when the time comes. To schedule a free consultation with Mr. Carp, call our office today at (636) 947-3600 or send us an email through our online contact form.