Setting up a trust is a very popular estate planning method that transfers assets out of the estate and thereby avoids probate. Upon decedents\’ death, everything that was placed inside the trust can be transferred to beneficiaries in accordance with directions supplied in the last Will.

Safeguarding inheritance property in a trust provides multiple benefits, but this method is not always the best solution for everyone.

Trusts are typically setup when the value of assets surpasses $100,000. When the value is less, people can enter into estate planning methods that provide nearly identical benefits as trusts, but without the accompanying costs.

The process mandated for settling estates in the United States is known as probate. This process is oftentimes burdensome because it makes the Will vulnerable to being contested by heirs. Even when heirs are in complete agreement, the probate process can last many months while the estate agent deals with settlement responsibilities.

Probated property cannot be transferred to heirs until the process is complete. This oftentimes results in depreciation of property value. Furthermore, when estates do not have enough money to repay creditor debts, a judge might require the estate agent to sell inheritance property to cover the cost of outstanding debts.

Every Will that is recorded through the probate office becomes public record. Anyone that wants to read the Will or view death certificates are allowed to obtain copies for a nominal fee. Probate liquidators and real estate investors spend a lot of time at probate court reviewing public records to locate potential deals on valuable assets.

When trusts are established, the Will remains private and can only be viewed by estate agents, heirs, and beneficiaries. Furthermore, placing property inside a trust may reduce or exempt property from estate and inheritance taxes. Establishing trusts isn\’t a complicated process, but does necessitate working with a lawyer or estate planner.

Multiple kinds of trusts are used and each has a different purpose. Some of the more well-known include: testamentary, revocable, irrevocable, and irrevocable life insurance trusts. The latter is typically used by the wealthy when estate value surpasses $2 million.

For the most part, trusts can be setup in a day. With that being said, it\’s vital to carefully plan when setting up irrevocable trusts because once they are in place the terms cannot be altered. Professional estate planners can help individuals\’ figure out which kind of trust is best suited for their personal situation and will offer the greatest protection to their family.

Estate planning is a very personal experience, so it can be advantageous to talk with several professionals. It\’s best to work with planners whose personality is well-suited to your own and make you feel comfortable and confident with their abilities. Considering you are making crucial decisions that will directly impact your family, it\’s important to work with a person you trust and respect.

If setting up a trust isn\’t the best method for your situation, there are several other options that can ease burdens of estate settlement. By obtaining adequate counsel, you can learn how to protect assets and prevent property have having to pass through probate.

Learn more about each type of trust and the benefits they offer from California probate liquidator and real estate investor, Simon Volkov. His extensive estate planning library helps people learn about probate, ways to avoid probate, and methods for reducing estate taxes at www.SimonVolkov.com.

Learn more about each type of trust and the benefits they offer from California probate liquidator and real estate investor, Simon Volkov. His extensive estate planning library helps people learn about probate, ways to avoid probate, and methods for reducing estate taxes at http://www.SimonVolkov.com.

Author Bio: Learn more about each type of trust and the benefits they offer from California probate liquidator and real estate investor, Simon Volkov. His extensive estate planning library helps people learn about probate, ways to avoid probate, and methods for reducing estate taxes at www.SimonVolkov.com.

Category: Finances
Keywords: trust, avoid probate, probate, probate process, irrevocable life insurance trust, estate planning