Living trusts are established to safeguard your wealth and provide ongoing benefits for your family members beyond your own lifespan. A Living trust, also referred to as a Revocable trust, is a legally binding document that assumes legal ownership of your assets, such as investments, bank accounts, real estate, vehicles, and valuable personal belongings, while you are alive. Additionally, much like a Last Will & Testament, it outlines the terms for distributing these assets following your passing or in the event of your incapacity. By transferring your assets to the trust, you effectively designate the trust as the asset owner rather than an individual person. You retain complete control and usage rights over your assets despite this transfer. Income earned by Trust assets is reported on the personal income tax return of the Settlor (person creating the trust). However, the assets are now shielded and overseen for the benefit of your family. What are the reasons behind establishing a Living trust? Read this blog to find out.
Asset Protection
Living Trusts can maximize the use of Estate Tax exemptions for married couples. Living Trust may contain sub-trusts within them that allocate the $2,000,000 Estate tax exemption each person has at death. Trust can include asset protection for beneficiary’s creditors, and provide protections for disabled beneficiaries and others.
Probate Avoidance
We want you to consider several strategies to avoid probate. To help minimize the probate process, you want to have a living trust. This tool will help you avoid probate by transferring the ownership and management of your assets to a trust during your lifetime. We also recommend having beneficiary designations on retirement accounts. Beneficiary designations on retirement accounts, such as 401(k)s, IRAs, and other qualified retirement plans, are an effective way to avoid probate for these assets. Some other ways to avoid probate include joint ownership with rights of survivorship, payable-on-death (POD) accounts, transfer-on-death (TOD) deeds and registrations, and life insurance policies and annuities. Speak to your attorney to see what solutions work best for you and your family.
Set Your Family Trust Up With Attorney Andrew Bucklin On The North Shore
It's crucial to seek advice from an estate planning attorney to determine whether they are suitable for your unique circumstances and to tackle any potential challenges or complexities that may arise. By carefully planning and executing these measures, you can steer clear of probate and facilitate a seamless transfer of assets to your beneficiaries. Setting up a family trust will be a great next step for you and your family. If you are looking to set up a family trust on the North Shore, Attorney Andrew Bucklin is here to help. Located in Lynn, MA, he will work closely with you to achieve all of your estate planning and family trust goals. With over 20 years of legal experience, he is the ultimate attorney to see in Greater Boston. For a free consultation, you can fill out my contact form here or give me a call at 781-632-8675.