A Trust Can Protect The Value Of Your Estate

Every single one of the assets that comprises your estate has some value. This value might be monetary. Or, it might be sentimental. Among many other possibilities.

You can use a trust to protect the value of your estate. Doing so allows your beneficiaries to receive all of the assets you wish to give them, including the full value of all of those different assets/the estate itself.

By going over how a trust can protect the value of your estate, and speaking with a Florida estate planning lawyer at the Millhorn Elder Law Planning Group today, you may have an easier time protecting your estate’s value.

What Is A Trust? 

A trust is a legal arrangement that gives another person ownership of certain assets, so that they can distribute them after your passing in a way that aligns with your wishes.

Just as an example, you can put your house and cars in a trust. The person who is in control of this trust – the trustee – will be responsible for giving those assets to your beneficiaries after your passing.

You can put just about any asset in a trust. Doing so grants your trustee ownership of those assets. And, you can outline specific wishes, for those assets – giving your car to your son, for example. 

How Can A Trust Protect The Value Of Your Estate? 

Unlike a will, the assets within a trust do not pass through probate. This means that they can go to your beneficiaries far more quickly and that they are not subject to the costs associated with probate. 

If your assets go through probate, it could take nine months – or more – for your beneficiaries to finally receive the assets you wish to give them.

On top of that, the assets within your estate could be used to pay off the costs associated with probate. This can mean that your beneficiaries receive far less money than you wish to give them, due to probate costs.

Putting your assets in a trust bypasses those major problems. Your beneficiaries can receive the assets you wish to give them right after your passing, instead of having to wait for assets that may have lost some of their value.

To go along with the above, the assets listed in your will can still be subject to creditors. This is because they belong to you. But, if you put your assets in a trust, it will be more difficult for creditors to get them.

The reason for the above is because placing assets in a trust transfers them to a trustee. And, creditors seeking repayment for specific debts can, in most cases, only take the things that you actually own.

A will offers many benefits. But, if you want to protect the value of your estate, and ensure that your beneficiaries receive all of the assets you wish to give them, you may want to develop a trust. 

What Can Happen If You Don’t Have A Trust? 

If you don’t have a trust, your assets will, in most cases, pass through probate. Some of the assets within your estate will, in many cases, be used to pay off some of the costs associated with probate.

Your beneficiaries may not receive your assets for anywhere from six months to a year. Depending on what happens with your estate, this process could take even longer.

If you have any creditors seeking repayment, they can file a claim against your estate. Your beneficiaries could lose some of what you wish to give them, because the assets within your estate may be taken to satisfy those creditors. 

Speak With A Florida Estate Planning Lawyer Today 

If you would like to develop a trust that protects the value of your estate, you may want to hire a professional. Speak with a Florida estate planning lawyer today and we will help you develop a trust that satisfies your needs. 

Sources: 

law.cornell.edu/wex/trust

law.cornell.edu/wex/probate