At some point as people get older they begin to consider just how will the assets they accumulated be distributed to their heirs. Most people have a will (though there are those that don't for one reason or another). They may also rely on beneficiary designations on their retirement accounts. This is a pretty straight forward way to convey many assets. But often we need to consider situations that aren't so straight forward. For instance, what about second marriages when there are kids from the first? Or, what if we are concerned with a young persons ability to properly handle (a bundle of) money?
The desire to avoid probate is probably the most common reason people consider a trust. There are a variety of good reasons to avoid probate. It takes time (sometimes a lot of time, like a year), incurs a tax on the value of the property, and finally is likely the last thing your executor wants to deal with given the situation (your death), and so people often hire a lawyer for the process (more expense).
If you own real estate out of state, then a trust can be very useful. Real estate generally has to be probated in the state where it is located. So, if you live in MD or VA, and own beach property say in DE or NC, that means separate probates in your home state and the state where your beach property is located. A trust can bypass this probate process.
While there's a lot to know about trusts, their advantages and drawbacks, it also isn't so complex that most people would benefit from exploring the topic further. If you have questions about trusts, give me a call or send me an email. I'm happy to talk with you.
The desire to avoid probate is probably the most common reason people consider a trust. There are a variety of good reasons to avoid probate. It takes time (sometimes a lot of time, like a year), incurs a tax on the value of the property, and finally is likely the last thing your executor wants to deal with given the situation (your death), and so people often hire a lawyer for the process (more expense).
If you own real estate out of state, then a trust can be very useful. Real estate generally has to be probated in the state where it is located. So, if you live in MD or VA, and own beach property say in DE or NC, that means separate probates in your home state and the state where your beach property is located. A trust can bypass this probate process.
While there's a lot to know about trusts, their advantages and drawbacks, it also isn't so complex that most people would benefit from exploring the topic further. If you have questions about trusts, give me a call or send me an email. I'm happy to talk with you.
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