A trust is a legal arrangement in which a trustee holds and manages trust assets on behalf of one or more beneficiaries. A trust can be used for a variety of purposes, such as protecting assets from creditors or lawsuits, minimizing taxes, and providing for loved ones who are unable to manage their own affairs.
Here are some situations where a trust may be needed:
- If you have significant assets a trust can help protect those assets from creditors and lawsuits
and can also be used to minimize taxes on your estate.
- If you have minor children: a trust can be used to provide for your children in the event of your
death and to name a guardian to care for them if necessary.
- If you have beneficiaries with special needs: A trust can be used to provide for the beneficiaries
who are unable to manage their own affairs.
- If you want to provide for a loved one in a specific way: a trust can be used to specify how and
when assets will be distributed to beneficiaries, giving you more control over how your assets
- If you want to keep your assets private: a trust can help keep your assets out of probate, which
is a court-supervised process that can make your assets and the distribution of those assets
It’s important to consult with an attorney who specializes in estate planning to determine if a trust is
the right solution for your situation.