The Importance of Having a Trust
Dec. 29, 2022
When considering estate planning, a trust is among the available options to protect your assets and prepare for life's uncertainties. With a living trust, you can keep assets for future generations, reduce estate taxes, and bypass probate. An experienced Kansas estate planning attorney can enlighten you about the importance of having a trust and how to draft one.
At CornerStone Law, LLC, I'm committed to offering personalized guidance and reliable advocacy to individuals and families in the legal matters of estate planning. I'm available to discuss your unique situation, help you understand what a living trust can do, and why you should include one as part of your comprehensive estate plan. My firm is proud to serve clients across Newton, Hutchinson, Hillsboro, Wichita, and counties throughout Kansas, including Marion, Harvey, and Sedgwick.
What Is a Trust?
A trust is a fiduciary arrangement through which a person (the trustor, settlor, or grantor) is able to grant the legal right, duty, and authority to another person (a trustee or successor trustee) to help manage trust assets for the beneficiary's benefit.
The trust assets involve any assets, property, and funds placed in a trust. The trustee or successor trustee will handle and distribute trust assets to beneficiaries according to the wishes of the trustor or provisions in the trust documents.
Types of Trusts
A trust created when the grantor is alive is referred to as a living trust. There are two types – revocable and irrevocable living trust.
A revocable trust is a trust which the grantor can revoke, amend, or terminate at any time. While the settlor is alive, they will have total control over the trust. However, assets placed in a revocable trust will remain subject to estate taxes.
Conversely, an irrevocable trust is a trust that the trustor can't revoke, modify, or amend without the beneficiary's consent. Once an irrevocable trust is funded, the grantor will relinquish control over the trust. Also, there are no estate taxes for assets placed in an irrevocable trust.
Benefits That Come From Having a Trust
Here are some incredible benefits of having a trust:
Administers Property: A trust allows you to provide instructions about how your trust assets and property should be administered upon your death or sudden incapacitation. The trustee will administer the trust assets according to the terms and instructions in the trust document.
Organizes Business and Personal Affairs: A trust allows you to organize your business and personal affairs prior to your death or sudden incapacitation. Regardless of what happens to you, you can have the peace of mind that your affairs will be managed according to your wishes.
Manages Assets if You Were to Pass Away: In the event of an unexpected death or incapacitation, the trustee can manage your assets in accordance with the provisions of the trust documents.
Stores Assets for Future Generations: Also, a trust can be used to store away assets, funds, and resources for future generations or minor children until a future date.
Pays Medical Bills or Provides for a Scholarship: A trust can be used to store assets and money away to pay your medical expenses or provide for a scholarship for minor children and dependents.
Avoids Probate: A trust allows your estate and assets to bypass the expensive and time-consuming court-supervised probate process.
Gives Privacy: Probate is often a matter of public record. Since a trust helps bypass probate, it ensures that your affairs will remain private.
Distributes Assets Faster to Beneficiaries: In addition, trust assets do not have to pass through probate. Hence, assets can be distributed to beneficiaries faster.
Manages and Controls Investments: With a trust, you can manage and control investments and ensure that beneficiaries spend or utilize resources responsibly.
Facilitates Business Succession: Also, a trust allows efficient and effective management of business assets and facilitates business succession.
An experienced Kansas trusts attorney can educate you about the legal processes for creating a trust and help you make informed decisions.
How an Attorney Can Help You Determine Which Is Right for You
Creating a trust can help you prepare for life's uncertainties, preserve your assets and investments, and bypass the costly probate process. At CornerStone Law, LLC, I have devoted my career to offering outstanding legal services and guiding clients through the complexities of estate planning and trusts.
As your legal counsel, I can enlighten you about your available estate planning options and help you decide whether a trust is right for you. Also, I will help draw up your trust document, fund the trust, and make sure it is valid and meets all necessary legal requirements.
Contact my firm – CornerStone Law, LLC – today to schedule a simple consultation with a seasoned trust attorney. I can offer you the personalized legal guidance and brilliant advocacy you need when establishing your estate plan. My firm is proud to serve clients across Newton, Hutchinson, Hillsboro, Wichita, and counties throughout Kansas, including Marion, Harvey, and Sedgwick.