Trusts are fundamental estate planning tools that have been used for years by people wishing to protect their assets and ensure their safe passage on to heirs. When the Tax Act of 2010 increased the estate tax exclusion to $5 million for individuals, some may have thought that a trust was no longer necessary to perform these valuable tasks.
However, a Newport Beach estate planning attorney says there are at least six good reasons for establishing a trust:
- Trusts can allow you to pass on assets without having to go through probate.
- Establishing a trust is usually much less expensive than the cost of probate.
- Trusts provide everyone with a degree of privacy that is lost through probate.
- Trusts can protect assets against creditors.
- Trusts enable you to set rules on when and if a beneficiary will inherit assets.
- Trusts guard against the vagaries of changing estate tax rules, shielding assets from potential taxes.
Trusts can be designed to protect and build on even a modest estate. Whether your desire is to provide for your immediate heirs, or leave a legacy that lasts far into the future, a trust can help you accomplish your goal.
Help is available to you by contacting your Southern California financial planning experts today.