Every estate plan must have various facets, and while creating a will is a fantastic start, many people also find that creating trusts is a fantastic way to prepare their assets for the future. Please read on and reach out to our experienced Montgomery County estate planning attorneys today to learn more about trusts, how we can help you create one, and how doing so may help you significantly in the future. Here are some of the questions you may have:
Why should I create a trust?
One aspect of a comprehensive estate plan is establishing a trust, which is essentially a contract between the estate and the trustee. The person you put in charge of managing the trust is known as the trustee. Once you pick your trustee, he or she will manage the trust for a beneficiary, thereby allowing your trustee to handle the assets on behalf of the beneficiary until they reach a point where they are capable of doing so themselves. Oftentimes, people create these trusts if they have minor children who are incapable of handling certain assets, though once they are of age, they will be able to access the assets left to them in the trust. Some of the most common types of trusts that individuals in Maryland can create are as follows:
- Revocable Trust
- Irrevocable Trust
- Testamentary Trust
- Life Insurance Trusts
- Special Needs Trusts
How can a trust help my family?
Trusts are unlike any other aspect of estate planning, which is why it is critical that you understand whether creating one is the best move for you. Some of the positive aspects of creating a trust in Maryland are as follows:
- Trusts can help you avoid probate: When the estate administration process occurs, your estate may enter probate, which is a time-consuming and sometimes expensive process. Fortunately, when someone establishes trusts, they may actually avoid probate altogether, as long as your trust is created properly and by an experienced Maryland estate planning attorney.
- Trusts often reduce gift and estate taxes, thereby saving your family money in the long run.
- Control over the disbursement of assets: Trusts allow individuals to more specifically designate asset distribution upon their passing, as well as help ensure that a beneficiary does not make poor financial decisions if he or she is not of age to handle certain assets responsibly.
Contact our experienced Montgomery County, Maryland firm
The attorneys at JDKatz have years of experience compassionately guiding clients in Maryland through the estate planning and administration process. Our firm also has experience with matters of elder law, business law, tax law, and litigation. For a legal team that will put your needs first, contact JDKatz today.