It is not just the trust beneficiaries and the trust administrator who need to understand how trusts work and what their benefits are. It is also important for you to understand trusts and the trust administration process if you are making an estate plan or if you are creating a legacy plan and you want to go the extra mile ensure that your loved ones and your assets are protected. Frank & Kraft will discuss your goals for your estate or legacy plan with you in order to help you to determine if a trust is right for you. Some of the factors that will help you to determine if you should create a trust include the extent of your wealth, the risks to your assets, who you are leaving an inheritance to, and the needs of your heirs or beneficiaries.
There are many significant advantages associated with the creation of a living trust, which is a very common trust type. In addition to providing powerful protection for your assets in case you become incapacitated, a living trust is also very helpful for facilitating the transfer of assets after death.
The probate process can take around a year to complete, which can be a problem for a multitude of reasons. Your heirs or beneficiaries will be without the assets that you left to them, and that they may be counting on, as the probate process unfolds. The assets in your estate will be managed by the executor of an estate during this time, which could also be a problem if you have wealth that must be managed by new owners very quickly in order to protect its value.
If you create a living trust and allow assets in the trust to transfer more quickly, both the risk to your heirs and the risk to your assets can be avoided.
The trust administration process can be better than the probate process for many reasons. Both processes are used to formally transfer the property left behind by the deceased to new owners. However, the probate process can take around a year and the costs can be around three percent of the estate to seven percent of the estate, or more depending upon the situation.
Because the probate process requires going to probate court, the probate process can also be a very public process. It can also be a risky process since an interested party could decide to contest a will and if that contest is successful, it is possible the wishes of the deceased won’t be respected.
While contesting a trust is a possibility, it is much less likely a contest of a trust will be successful. Because the trust administrator oversees the trust administration process outside of court, the process is also much faster and is much more private. If you don’t want to have outsiders involved, then the trust administration process is a good option. Of course, because a trust administrator has a fiduciary duty, there are still protections in place and it is still possible for someone who believes the trust administrator isn’t fulfilling his role to go to court and get help.
You should make certain that you get legal help with the trust administration process if you are a trustee or if you are a trust beneficiary. Frank & Kraft will guide you through the entirety of the stages and steps involved in trust administration so you can protect your rights, so you can keep an inheritance safe, and so you can ensure that the wishes of the deceased are honored.