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Benefits of a Trust
December 09, 2021 | Freya Allen Shoffner, Esquire

Benefits of a Trust



There are many components to an estate plan. A very beneficial component can be a trust. A trust enables the assets of a grantor to be transferred to a trustee for the benefit of a beneficiary. There are several different kinds of trusts with different ones applicable to different situations. Trusts can help direct who will receive your assets and in what manner.

The size of your estate and where you live impacts whether your estate will be subject to estate taxes, with very few currently having to pay federal estate taxes. A trust enables you to control your assets while you are alive and after you die. It can control who will receive your assets and on what terms. This specificity and control can be particularly important for surviving spouses and families with children from multiple marriages.

A trust can protect your legacy. It can protect your legacy from your heirs' creditors as well as from irresponsible behavior of the beneficiaries themselves.

A properly constructed trust will avoid probate. Probate is typically time consuming and expensive. Additionally, probate is of public record. Therefore, trusts can provide privacy while saving time and money.

Approximately one third of the states have estate or inheritance taxes with a much lower threshold than the federal estate taxes. Massachusetts is one of these states, with an estate tax exemption of $1 million. Tax planning using trusts, can be of a great help in these states.

Charitable trusts can enable you to donate assets to organizations of your choosing in a tax efficient manner.

Trusts can give direction for how your finances should be managed if you are incapacitated and unable to handle them yourself.

An irrevocable life insurance trust can keep a life insurance death payout from being considered part of an estate for tax purposes. The policy must be purchased by an independent trustee and held in the trust that is created and funded while the grantor is alive.

A trust can be set up to help a loved one with special needs. The trust can provide distributions to the individual after the grantor's death.

There are different kinds of trusts. What is right for you and your estate depends on your particular circumstances. Work with an estate planning attorney to determine if you would benefit from having a trust or trusts as part of your estate plan. Understand which trust or trusts you and your beneficiaries would benefit from. The benefits can be many. Contact Shoffner & Associates, experts in estate planning, to craft an estate plan that is best for you. Remember, it is advised to review your plan every three years and when major life events happen.

Starting a NEW business or know someone that could use our help? Call your friendly neighborhood attorney today.

With the right help, you are more likely to succeed. The attorneys at Shoffner & Associates will be happy to help you.

Freya Allen Shoffner, Esq.
Shoffner & Associates
Counselors to Small Business and Families.

Give Freya a call at (617) 369-0111 TEXT US (857) 524-3422 or email fashoffner@shoffnerassociates.com



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