the trust: pros and cons

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

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


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.


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.


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.


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.


Phone: (317) 684-1100

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

review:


Phone: (317) 684-1100

Trusts can help you to avoid probate.


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.


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.


Phone: (317) 684-1100

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

manage your affairs.


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.


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.


Phone: (317) 684-1100

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

be open to public scrutiny.


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.


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.


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.


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.


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.


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.


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.


Phone: (317) 684-1100


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.


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.


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.


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.

http://www.frankkraft.com/


Phone: (317) 684-1100

http://www.frankkraft.com/