Living trust attorneys will work with you to determine if trust creation is the best course of action as part of your incapacity plan or your estate plan. There are different kinds of trusts that you could potentially incorporate into your plans for the future, but a living trust is one of the most popular types of trusts because of the flexibility that it can provide to you.
However, while a living trust has many substantial benefits — including protecting assets in case of incapacity and facilitating the timely transfer of assets to heirs or beneficiaries, there are also some limitations associated with this trust type. Many people do not really understand how a living trust works and they have misconceptions about what a living trust will do for them that could cost them. Frank & Kraft will ensure that you know the facts about how living trusts work within your plans for the future and we help you to create a legally valid trust document that provides expected benefits and protections if you decide that a living trust is the right choice for you.
If you want to learn more about the many uses of a living trust and find out if you should create one, you should give us a call. You can also read on here to find out the truth about some common misconceptions about living trusts.
Myth: Living Trusts Allow you to Avoid Estate Tax
A living trust will allow you to transfer assets outside of the probate process. In fact, transferring wealth outside of probate is one of the key reasons why people decide to create a living trust. However, while your assets do not have to pass through the probate process, the assets that are held in a living trust are still considered to be a part of the assets that make up your estate. This means that when a determination is made regarding whether you will owe estate tax, the value of the trust assets are counted — and this value is also factored in when a determination is made regarding the amount of estate tax that you end up owing. If you want to try to avoid estate tax, you will need to work with an experienced attorney to find out about some of the other options for transferring wealth that can reduce your tax liability.
Myth: Living Trusts are Only for the Wealthy
Living trusts are not just for people with tons of money. In fact, if your family isn’t extremely wealthy, it may be even more important for you to make a living trust. If your loved ones depend upon your income and you pass on without making an estate plan to transfer assets outside of the probate process, your family could end up having to wait a long time for your estate to be settled and an inheritance to come through. If the inheritance was supposed to sustain your loved ones and provide for them when you were no longer there to serve as the breadwinner, the long probate process is a big problem. Transferring assets through trust administration can be much faster and is often preferable, so even middle class families should consider creating a living trust so their assets can move quickly to new owners.
Getting Help from Living Trust Attorneys
Living trust attorneys at Frank & Kraft will make sure that you understand exactly what the benefits and limitations of a living trust are so you can decide if you want to expend the time and effort to create this trust type. We can also discuss pros and cons of all types of trust creation and can help you to make different kinds of trusts including living trusts and irrevocable trusts.
To find out more about how our legal team can help you to decide if you need a trust and to find out how we can help you use trusts to your benefit, you should join us for a free seminar. You can also give us a call at 317-684-1100 or contact us online if you want to talk with an experienced and compassionate member of our legal team about how the trust creation process works. Even if trust creation is not the right step to take for you right now, we can also help you to identify your goals and move towards them using other appropriate legal tools. To find out more about the way in which our firm can help you, give us a call now.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.