If you are like most adults in Indiana, you want a way to ensure that your family will be financially taken care of after you’re gone. One way to achieve this goal is by establishing a trust. A trust can give you much more freedom and control over how you distribute your assets. With that in mind, here are some of the important benefits associated with establishing a family trust.
Protecting assets from creditors
Many people are currently working to manage their respective debts with creditors. Even if you don’t have any debts to pay off, your beneficiaries might. And, when they receive their inheritances, you don’t want this money in the hands of creditors. Fortunately, trusts protect any assets their owners leave behind.
Not having beneficiaries pay lots of fees and taxes
Inheriting a large sum of money can seem like something without any drawbacks. Unfortunately, that’s not always the case. When some people inherit money, they need to pay a hefty tax bill on this inheritance. After establishing a trust, large portions of what your beneficiaries inherit won’t go towards paying expensive tax bills and fees.
Avoiding the probate process
Another reason to establish a trust is that your beneficiaries avoid going through probate. Without a trust in place, your beneficiaries are stuck in the time-consuming probate process. Plus, probate matters become public records. Chances are, you don’t want total strangers learning about your assets and the beneficiaries who inherited them.
In conclusion, it’s imperative to plan out what you’ll leave behind and who will receive these assets. Fortunately, a trust gives you complete control over how you’ll distribute your assets.