Trust-Based Planning

TRust-Based Planning

The most common type of trust is the revocable living trust. After creating a revocable living trust, you can continue to edit and update the trust so that it continues to reflect your goals and concerns as life changes. They are powerful tools to take care of yourself and your family. Because trusts come into effect once you sign the documents, they can provide excellent asset protection and incapacity planning. A comprehensive trust-based estate plan includes a Trust, a “Pour-Over” Will (which places any property not in the trust into the trust upon your death), a General Durable (i.e. Financial) Power of Attorney, Medical Power of Attorney, Living Will, and HIPAA Waiver. This type of planning provides you with comprehensive incapacity and passing away planning.

Benefits of a Trust

A trust offers the following benefits:

  • Control of your property while you are alive
  • Take care of you and your loved ones in the event of incapacity
  • Pass your property to whom you want, when you want, and how you want
  • Ensure that the efforts you desire are used to prolong your life
  • Simplify and streamline administration after your passing or during incapacity
  • Your trust remains private during the administration of your trust
  • Your property can continue to benefit the surviving spouse after one of you passes
  • Protects your assets from being lost as a result of a remarriage after one spouse dies
  • Can protect your property and your loved ones from creditors, predators, and the mismanagement of property
  • Continue to teach your values, virtues, and vision to your loved ones
  • Flexibility with how you continue to take care of your loved ones after your pass, rather than outright distributions
  • Continue to provides structure for your descendants
  • Reduces the risk of litigation among your loved ones
  • Minimize income taxes to the extent possible
  • Minimize capital gains taxes on the sale of assets

Contact The Rains Law Firm

If you believe that this type of planning may be right for you, please contact The Rains Law Firm or schedule a complimentary initial meeting.

Additional Learning

For additional learning on this subject, please click on the links below or visit the Legal Topic Library.

Trusts

Blended Families

Standalone Retirement Trust (SRT)

Irrevocable Trusts