Do I Need a Trust Fund?

A trust might help ensure that the person or people you want to benefit from your assets, both while you’re living and after you pass, will be honored. Using a trust can often provide tax benefits as well as the ability for assets to change hands outside of probate.

If you have a trust, the probate process could be skipped, which might save time, ensure assets go to the chosen beneficiaries, and help maintain the family’s privacy.

What Is a Trust?

The IRS defines a trust as “a legal arrangement which can help you to control your assets and possessions. Often, trusts can help to reduce taxes on your estate and speed up the process of allowing beneficiaries access to those assets.”

The Difference Between a Trust and a Will

– A will goes into effect only after you die. It’s also called a “last will and testament.” – A trust can go into effect while you are still alive.

The Difference Between a Trustee and a Beneficiary

A trustee holds legal title to the property  or assets of another person, the beneficiary. A trustee is responsible for administering the trust on behalf of those beneficiaries.

A Living Trust

A living trust is a legal arrangement that you create during your lifetime (like a will), but instead you specify exactly the way you want your estate handled while you are still alive.

A revocable trust

This gives you continued control and access to the assets in the trust as well as the option to make changes to beneficiaries or even revoke the trust whenever you want.

An irrevocable trust

This cannot be changed, modified, or adjusted. That means that any assets transferred into an irrevocable trust cannot be taken back.

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