It is a common saying that death and taxes are inevitable. Keeping that in mind, isn’t it better if you prepare for death beforehand so that your children can live a better life after you die?
A trust is an arrangement in which a person (the settlor) transfers his assets to another person (the trustee) to hold it for a list of special people (the beneficiaries) during his lifetime. After the death of the settlor, the assets are transferred to the list of special people assigned by him.
Setting up a trust offers a variety of benefits, the most important of which are:
It Offers More Protection
Probate is a method where the state administration delegates the individual’s estate and assets upon his death. This process can be very time consuming and cost a lot of money.
By setting up a trust, you can protect your assets from a lot of probate fees and any lawsuits. In case a person hasn’t set up a trust, his will and property are made public, and if the individual has assets in different states, a probate fee ranging from 3 to 8% will be deducted from each state.
To avoid this, if you live in an area such as California you can apply for living trusts in San Diego or your local area and ensure that the transfer of assets after your death goes seamless.
It Is More Flexible
The best part about funds is that you can put aside money for different things. It totally depends on the beneficiary. You can set aside money for education, medical support, or old age homes support. It helps you secure the future of your children in the most efficient way possible.
A living trust is revocable, which means that you can take control of your assets anytime you want to.
It Saves More Money
As already mentioned above, you can save probate fees when you set up a living fund. Living funds are also legal, so you don’t have to worry about distribution after your death.
Setting up a living fund can be a bit more costly than a will, but it saves you money in the long run.
A living trust is more complex and requires a professional to handle the task. You must also keep funding your trust, and if you wish to change the beneficiaries, you can do so anytime you want to.
It Provides a Peace of Mind
When you draw up your trust fund with the help of an expert professional, you have clear plans set for your assets and property.
You don’t have to worry about any fights between families or hurting a loved one. With a trust fund is set up, you can rest assured that your children won’t have any money problems and that your assets will be handled exactly how you wish.
Moreover, the existence of trust also provides comfort to your loved ones that you have plans for them, and they don’t need to stress about financial problems.
Trusts are one of the most secure ways to transfer funds, and you can even protect your assets from going into the hands of certain people.