Lidia Law Firm, P.C.
Estate Planning & Business Law

The advantage of Trusts, explained

Many Oklahoma residents feel apprehensive about setting up a Trust; others feel that it simply is not worth the time. Wherever families may lie on this spectrum of opinion, many are confused about the meanings of a will or Trust altogether. Below are some accessible facts about a Trust specifically, and how having one may prove advantageous.

First, an article in Forbes explains that, as a whole, a Trust is a group of assets prepared for beneficiaries. Overseen by an appointed Trustee, the management of a Trust involves directions on how assets are to be distributed -- these can include cash, property and other important belongings. A will and a Trust each have a number of benefits, but Forbes points out that Trusts can help one avoid probate, and can even prove more flexible than a will. Although potentially more costly, some families may benefit from Trusts more than others. For instance, those with minor children might want to consider Trusts, since a Trust could allow more control over when, exactly, a child receives money. In addition, Trusts can allow parents to categorize where money will go, such as education or other major life expenses. 

When an individual decides to set up a Trust, they may face a wide range of selections. CNN lists the following main types of Trusts:

  • Qualified terminable interest property Trust
  • Qualified personal residence Trust
  • Irrevocable life insurance Trust
  • Credit-shelter Trust
  • Generation-skipping Trust

The above selections can certainly seem overwhelming at first glance, but CNN goes on to describe the details. For families with divorces, remarriages and step-children in the picture, a qualified terminable interest property Trust may be the safest bet. For those who expect the family home to appreciate in value, a qualified personal residence Trust is ideal. An irrevocable life insurance Trust can help one pay estate costs and can provide heirs with cash. As for credit-shelter Trusts, spouses may pass on amounts to a Trust up to an estate-tax exemption, ultimately leaving the surviving spouse with a tax-free estate. Finally, one perk of a generation-skipping Trust allows grandparents to pass on varying amounts of money for grandchildren. No matter the goal, a Trust can help families in a plethora of ways.    

 

 

No Comments

Leave a comment
Comment Information
FindLaw Network

Contact the Firm

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy