Why Should You Have a Trust?

Yee Law Group Inc. > Why Should You Have a Trust?

Sacramento Trust Lawyer

If you think that trusts are only for the wealthy, you’d be wrong. Even the “average” person can benefit from a trust.

Unfortunately, many people believe that estate planning isn’t for them. That their assets don’t qualify for protection. That has to be one of the biggest misconceptions. Everyone can benefit from establishing a trust and planning for the future of their estate. You have spent majority of your life creating a secure lifestyle for yourself and your loved ones. It deserves to be protected and to have the right people in charge when that time comes. 

I know, the process of estate planning can be complex for the average person which is probably why most people put it off, but putting it off doesn’t do any good for anyone. A trust is an agreement between two parties a settlor and a trustee. A trustee tends to agree to accept, manage, and protect assets that have been delivered by the settlor. 

That means the trustee will administer those assets according to the instructions of the trust, and distribute the trust income and principal that the trust states for benefit of the people identified in the trust. A trustee is to follow the trust terms and to follow through with your wishes for assets.

Why are trusts established? Here are few reasons…

  • Manage and control spending and investments to protect beneficiaries from poor judgement
  • Avoid court-supervised probate of trust assets
  • Protect trust assets from the beneficiaries’ possible creditors
  • Protect premarital assets from division during a divorce
  • Set aside funds to support the settlor if for some reason incapacitated
  • Manage unique assets that might not be easy to divide like vacation homes, pets, etc.
  • Manage business assets for planned business succession
  • Provide a structured income to a surviving spouse that protects assets for descendants if spouse remarries
  • Reduce income taxes or shelter assets from estate and transfer taxes

There may a variety of reasons as to way you might want to create a trust so that you can achieve your specific goals. Everyone has an unique situation and life isn’t cut and dry. Complexities arise even ones that you might not even think existed. That’s why working with a skilled professional like a trust lawyer could answer any of your questions or to get you on a path to clear understanding of what would be in your best interests.

If you want to get a start on your estate planning then speaking with a professional like a Sacramento trust lawyer from a law firm like Yee Law Group, P.C. could help you with the process and understand more how a trust lawyer could help you with your situation.