Last week, we talked about a woman from another country who was so upset with heirs, she chose to physically destroy her money rather than pass it on to grandchildren. While that was an extreme case, it’s not uncommon for individuals to be displeased with decisions or actions from heirs, and worry about your legacy and your wealth when you are gone is completely normal.
Instead of tearing up your money or taking other drastic action, you might consider the value of a trust. Trusts are versatile legal tools that let you protect your wealth and benefit yourself, your estate and your heirs. Several types of trusts exist. Revocable living trusts, irrevocable life insurance trusts and special needs trusts are just some types of trusts that you might include in your estate plan. The type of trust you select depends on your goals and situation, which is why it’s important to understand estate planning law before making a decision.
A trust can be used to protect and shelter your assets for your own use later in life. It can also be used to shelter some assets from tax burdens, though this is a complex matter. Despite what you might see on television, a trust doesn’t automatically remove any responsibility for paying taxes. Our firm can help you understand the true relationship between trusts and taxes so you can take advantage of the legal benefits of a trust.
Another benefit of a trust is that you can provide for groups, heirs or charities even after you are gone. A trust lets you put certain provisions in place so that your wealth is more likely to be used in a manner that you agree with. Our firm works to educate you regarding the benefits and limitations of trusts so you can make the best possible estate planning decisions.