When you are making an estate plan, you may want to consider forming a trust or even multiple trusts. There actually is no limit to how much money you can place in a trust, so it’s a useful estate planning tool whether you are trying to pass on your assets or provide a family member with care after you have passed away. A Washtenaw County trusts attorney can help you figure out how to take advantage of a trust and protect your assets.
What Are the Benefits of a Trust?
When you place money in a trust, you are protecting it from the probate process and making it clear who the beneficiaries will be. You can also use one to give gifts, which makes it easy to begin transferring your wealth to other family members and loved ones before you pass away. One person can give a gift of $17,000 away to each person each year without worrying about the gift tax.
A trust can also make it easier to avoid estate taxes. The threshold for the estate tax is high, but if your estate is valuable enough this is certainly something that you’ll want to avoid. There is no limit to how much you can put in your trust, but you’ll want to think carefully about how your assets are divided up.
What Kind of Trust Would Work Best For Me?
There are many kinds of trusts that you can use. An irrevocable trust has strict rules that cannot be changed, while a revocable one gives you more flexibility. A marital trust or QTIP trust can help you ensure that a spouse has money after you pass away. You can also set up a pet trust that provides money and care instructions for a furry friend of yours. Which trust works best for you can depend on your goals, how much you have in assets, and numerous other factors.
Are Trusts Insured?
Yes, trusts are insured, but the FDIC has its limitations with trusts just like it has its limitations with bank accounts. Most trusts can be insured for up to $1,250,000 per owner. You may want to establish multiple trusts at different institutions to ensure that everything is well-protected.
Do I Need an Estate Planning Lawyer?
Making an estate plan on your own is difficult. Establishing a trust is just one part of it, and look at how many types of trusts and details we have to keep track of just when we’re talking about one of those. Having a knowledgeable lawyer on your side can make this process so much easier, and you’ll have the peace of mind that comes with having a professional approve of your plan.
Contact Our Law Firm
Don’t go it alone when it’s time to make an estate plan. Contact Collis, Griffor & Hendra and schedule a consultation with our team. We would love to tell you more about the benefits of the most useful estate planning tools and what our attorneys can do to assist you.