Planning for the future can be complicated. It’s tough to know where even to start. What do I need to do to make sure my legacy passes on to my loved ones? Should I choose a will or a trust? Although the options surrounding your future may feel overwhelming, the best choice you can make is an educated one. In this post, we will focus on the basics of what a trust is and what the benefits are to choosing this route. In understanding the basics of what a trust provides as well as the guidance from a trust lawyer, you will have the ability to make the best choice for your future.
A trust, or trust agreement, is a written document where a business or individual holds legal title to property for the benefit of the grantor. The “grantor” is the person who owns the property (like you) that will choose the trustee to manage the property and assets.
The greatest benefit of selecting a trust in Ann Arbor is that your loved ones will not have to go through the probate process after you have passed. For those unfamiliar with probate, it is a lengthy process in which the beneficiaries of the estate will go a probate court or an administrator to prove the validity of a will and administer the estate of the decedent. It is often lengthy and open to causing strife between loved ones. Long story short – trusts are great because your loved ones can avoid probate all together and the public exposure that comes along with it.
Other benefits that come from choosing a trust include tax savings by transferring the assets to another trust, leaving property to your children (which will be managed by the trustee until the children are of age), protecting your assets by placing restrictions, and more. In understanding how the benefits of a trust agreement align with your specific needs, an Ann Arbor trust lawyer can help you make the best choice and protect your legacy once you pass.