No matter what your income or net worth is, it is important to think about your financial future. If you have built up significant net worth, then estate planning may be important as well.
Learn about creating one or more trusts to protect your estate. They are versatile instruments that can help in many situations. Consider using estate planning services Westport CT.
Trusts In A Few Words
In a nutshell, trusts are legal arrangements in which property and assets are held by a third party (a bank, for example) on the behalf of one or more other people. More specifically, a trust holds this property in a fiduciary relationship for one or more beneficiaries. Once in the trust, the assets are owned by the trust and they remain subject to the instructions set forth when the trust was created. Therefore, a competent professional is used to make sure that trusts are properly created and legally valid.
Why Use Trusts As Estate Planning Tools
The following situations may come into play when considering ongoing estate planning:
- Minimizing income tax, estate tax, or transfer tax
- Planning for business succession
- Maintaining assets for beneficiaries at some time in the future
- Avoidance of probate and maintenance of privacy
- Long-term gifts to charities
For each of these examples and many others, the establishment of a trust can be a very good choice. Furthermore, trusts are not just for the ultra-wealthy. Average people can benefit from the creation of trusts as well, especially if some of the above-cited situations pertain.
Make Sure You Use A Financial Expert
You should be aware that trusts at legally binding instruments. Therefore, you will want to work with a professional team that is well versed in trusts, estate planning, and related areas. Make sure to obtain their professional counsel and expertise.