the trust: pros and cons

135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485

Phone: (317) 684-1100 THE TRUST: PROS AND CONS

135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485

Phone: (317) 684-1100

Estate planning can be a complex process that utilizes

a wide variety of legal tools and strategies to achieve

your end-of-life and legacy goals.

135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485

Phone: (317) 684-1100

One of those tools is the trust. If you’ve ever

wondered whether a trust might be right

for you, it is important to understand the

benefits and drawbacks of using one in

your estate planning strategy.

135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485

Phone: (317) 684-1100

A trust is a legal arrangement where you give

your assets to someone else to manage for the

benefit of a third party.

135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485

Phone: (317) 684-1100

With a trust, you create a legal entity that retains ownership of those

assets, appoint a trustee to manage the trust, and designate the

beneficiaries you want to receive the trust’s benefits.

135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485

Phone: (317) 684-1100

So, what are the pros and cons associated with having a trust? Let’s

review:

135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485

Phone: (317) 684-1100

Trusts can help you to avoid probate.

135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485

Phone: (317) 684-1100

Since the need for probate is dependent upon how your assets are

titled, transferring ownership to a trust is one of the easiest ways to

avoid the need for a court-supervised settlement of your estate.

135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485

Phone: (317) 684-1100

With a trust, your trustee (or successor trustee if you’ve named yourself as the primary trustee) takes over control of your assets when you become incapacitated.

135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485

Phone: (317) 684-1100

Without a trust or power of attorney, a court would appoint a guardian to

manage your affairs.

135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485

Phone: (317) 684-1100

If you have a spendthrift heir or a disabled child you need to provide

for after your death, trusts are flexible enough to handle those

special circumstances.

135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485

Phone: (317) 684-1100

The probate process is a matter of public record. With a trust, there is

no need for a court and thus no public record.

135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485

Phone: (317) 684-1100

That can afford greater privacy for those who don’t want their estates to

be open to public scrutiny.

135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485

Phone: (317) 684-1100

he legal costs associated with

establishing and funding a trust can

represent a sizable investment up-

front. Those costs can be a deterrent

for some.

135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485

Phone: (317) 684-1100

However, it is important to note that probate costs are high too; they just get paid by the estate when you die.

135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485

Phone: (317) 684-1100

Having a trust doesn’t eliminate the need for a will. You will at least need a pass-over will to account for assets that you failed to get transferred into

the trust.

135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485

Phone: (317) 684-1100

A trust without funding is like a pond without water. To be effective, you must fully fund your trust, and that means proper titling and transfer of

ownership.

135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485

Phone: (317) 684-1100

It is not uncommon for people to create trusts and then forget to transfer the assets needed to

accomplish their specified goals.

135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485

Phone: (317) 684-1100

Trusts are valuable tools for estate planning, but they can become less

relevant as time goes by if you fail to keep them current.

135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485

Phone: (317) 684-1100

You need to regularly update the provisions of your trust to account

for new births and deaths, new asset acquisitions, and changing needs.

135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485

Phone: (317) 684-1100

135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485

Phone: (317) 684-1100

At Frank & Kraft, Attorneys at Law, we have the answers to all your questions about trusts and other

estate planning concerns.

135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485

Phone: (317) 684-1100

Our experienced team of legal professionals can help you to

determine whether a trust is right for your individual circumstances,

incapacitation.

135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485

Phone: (317) 684-1100

and help you develop the comprehensive strategies you need to manage and protect your assets, grow wealth over time, and provide

important safeguards against incapacitation.

135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485

Phone: (317) 684-1100

To find out more about how we can help you with your estate planning and

elder law needs, contact us online or call us at (317) 684-1100 today.

135 N. Pennsylvania Street Suite 1100 Indianapolis, IN, 46204-2485

Phone: (317) 684-1100