Set up trusts to minimize estate taxes, avoid probate, and seamlessly transfer your assets to your heirs.
People set up trusts to minimize estate taxes, avoid probate court, and seamlessly transfer money and property to heirs.
The three players in a trust are the person who creates it (Grantor), the person or people who manage it (Trustees), and the person or people who get the money (Beneficiaries).
All the property and assets you put in a trust, including money, is called a Principal.
A Living Trust is set up and funded while you’re alive; a Testamentary Trust doesn’t become effective until you die and is often comprised of your entire estate. Cheery!
Even the smartest and savviest financial minds can get tripped up by Trusts, especially since they vary from state-to-state, so it’s best to consult an attorney. Anything that requires you to set up a bank account as if its a corporation requires extra care and attention to detail.