There are many approaches to setting up an estate plan that is right for you. You may have heard of wills to protect your assets, but another effective way to protect your estate is through a trust. Establishing a trust is particularly useful if you have an inheritance that you want to pass down to loved ones. A trust allows a third party to hold your assets so they can be later distributed to your beneficiaries. One of the most popular reasons why people choose trusts is because they avoid probate and generally avoid probate. A trust attorney in Sacramento, CA like one from Yee Law Group, PC can explain to you about the full benefits of a trust. Before you begin, it helps to know key tips so you can set one up properly.
Know what type of trust you want
There are several different types of trust. You can choose from two basic types: revocable and irrevocable trust. A revocable trust can be modified or dissolved at any time, while an irrevocable trust cannot be altered once it is set up. Which one you choose depends on your specific goals. Wills are often made public, so trusts allow people to manage their assets in private.
Calculate the costs
The cost of setting up a trust can vary. If you need asset protection for example, it can increase the cost. Establishing a trust can be straightforward, but it can be more complicated depending on what your particular needs are. Before you go on with the process, make sure you have an idea of what the expenses will be.
Make a document
Creating a legal document specifically for your trust is necessary. A trust document will include details such as the primary people involved, such as the trustee and beneficiaries. It can help you keep track of what assets are placed in your trust and who the beneficiaries are.
Sign the agreement
Though notarizing a trust document is not legally required in every state, doing so adds another layer of security. It helps keep your trust from getting into the wrong hands, such as people trying to steal your assets. For more information about notarizing your document and whether a witness is required to be present, a trust attorney can help you.
Trusts allow for a more streamlined method of passing assets to beneficiaries and are a good way to keep your assets protected. Schedule a consultation with a top trust attorney in your area now.