An estate trust allows you to set the conditions providing for the distribution of assets upon your death. There are many reasons you would want to establish this type of estate plan. You want to preserve as much of your assets as you can because you worked hard to acquire them. Among the other reasons are:
1. You can stipulate how and when your assets are to be distributed after you die. You can, for instance, stipulate the distribution of your assets to children in equal parts over a period of time, or upon the condition that they graduate from college.
2. Estate and gift taxes can be significantly reduced.
3. Your assets will be distributed to your heirs efficiently and without the delay, cost and the publicity of probate court. Probating an estate can cost up to seven percent of your estate.
4. Protection of your assets from lawsuits.
5. You can name a trustee who will manage your trust after you die, but you can also empower this trustee to manage the trust assets if you become unable to do so while alive.
6. A trust will eliminate much of the family wrangling which may occur if there is no estate plan.
Trusts are flexible, but trusts can also be varied and complex. There are disadvantages to a trust, but the advantages far outweigh those disadvantages. An Estate Trust in Libertyville attorney can explain the issues and advise you on which type of trust will avoid the problems. Trusts are flexible, varied and complex. Each type has advantages and disadvantages, which you should discuss thoroughly with your estate planning attorney before creating a trust.
A trust enables you to provide for your spouse through the planned distribution of assets for living expenses and medical needs. A trust also enables you to make certain your spouse receives the home, and any other assets which do not have a title but can be named. These could include valuable antiques and other items like paintings. Non-liquid assets such as stocks, bonds, partnerships and investment properties can be distributed to your spouse under any arrangement you believe to be appropriate.
One of the best features of an Estate Trust in Libertyville is the estate taxes will be greatly minimized or in some cases eliminated. This allows the preservation of your assets for your family and not the government. Charles T. Newland and Associates are experienced in estate tax avoidance.
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