A trust is defined legally as “[a]n equitable or beneficial right or title to land or other property, held for the beneficiary by another person, in whom resides the legal title or ownership, recognized and enforced by courts of chancery.” In other words, one person ( the “trustee”) holds property for the benefit of another (the “beneficiary”).
Trusts, although relatively new in estate planning popularity, are very useful for a variety of reasons, as discussed below, but the legal issues surrounding trusts can be complicated. If you need help creating or administering a trust, you can access everything you need through the virtual services of the Law Office of Kim M. Dubois PLLC for your convenience and affordability.
The Purposes of Trusts
Trusts have become more popular as an estate management tool over the past several years. Trusts are flexible to the extent that most estate planning goals can be achieved through their use, yet efficient enough such that the assets remain within the estate, especially when virtual legal services, such as those offered by the Law Office of Kim M. Dubois PLLC, are utilized.
The uses and advantages of trusts include:
- Avoiding probate. This can be a huge advantage, as it avoids cutting into the trust funds. Probate can cost between 5% and 7% of your estate.
- Taking advantage of estate tax exclusions. Current tax laws allow for avoiding estate tax.
- Planning for family members. Trusts can be used to encourage meritorious behavior, such as seeking higher education, and discourage less desirable behavior.
- Making special lifetime provisions. Well-designed trusts actually protect beneficiaries rather than hinder them.
- Planning for potential disability. Trusts allow a grantor to plan for the future and what will happen if the grantor become incapacitated
- Enhanced security. Trusts provide better protection from creditors and lawsuits for your assets.
To create a valid trust, there must be:
- An ascertainable beneficiary; in other words, an entity that benefits from the trust,
- A named or appointed trustee; in other words, an entity to administer the trust,
- A present and existing property; in other words, the property of value that is the subject of the trust,
- Intent to create a trust, and
- Capacity to create the trust; generally anyone capable of holding property.
Law Office of Kim M. Dubois PLLC can help you create a valid trust that meets the necessary legal requirements and serves its primary purpose – to protect your loved ones and your financial future.
Learn More By Scheduling a Free Consultation
The Law Office of Kim M. Dubois PLLC offers estate planning services 100% remote. Together we can discuss your unique needs and create a trust, or other estate planning document that ensures your family the protection and security you’re looking for.
We make it easy to look for the future. Your initial consultation is free, we can connect via video and telephone conferencing and we offer after-hour availability for those with demanding work schedules.
Contact us online today to schedule your consultation or to learn more about our estate planning services.