Many people often hesitate to make an estate plan, even though it’s crucial in protecting an individual’s assets in the event of their incapacitation or death. People feel intimidated by the long and complex legal process, this includes writing a will, who to choose as Power of Attorney, and whether or not to establish a trust.
However, a trust helps further strengthen and improve an estate plan. Here are some reasons why you should develop a trust for your estate plan.
To Avoid Probate
Probate is a legal process where a deceased person’s will is reviewed to determine that the will is authentic and valid. Probate also includes the process of enacting upon a person’s will and administering their estate plan.
After a person’s death, the court appoints an administrator or an executor, depending on whether the person left a will. It’s the responsibility of the executor or the administrator to use the assets to pay liabilities on the estate of the deceased person and distribute the assets to the mentioned beneficiaries.
Using a trust helps to avoid a probate hearing. If your estate planning is involved in probate after your death, it will take time and money to resolve those legal issues before your estate plan can be enacted according to your wishes.
To Reduce Taxes
If you are in possession of a highly valued estate and assets, you will have a significant tax liability on your estate, and your estate planning should aim to reduce this tax liability as much as possible.
You can establish a trust as a way to help reduce the tax liability on your estate plan. For example, an irrevocable trust allows you to place your assets into a trust and withdraw your ownership rights over them. Since you no longer own the assets inside the trust, you are not liable to pay taxes on these assets, and their value does not apply to your estate.
To Have More Control Over the Disbursement of Your Estate and Assets
A trust will allow you to have more power and control over the distribution of your estate and your assets compared to a will. If you have a trust, you can prevent your beneficiary from losing all their inheritance over bad financial decisions.
To establish a trust and get help from estate plan lawyer in Reno, contact us at Kalicki Collier. We have a team of experienced lawyers who deal with many areas of the law, including trust creation, probate management, asset protection, and estate planning. Book a consultation with today.