Through a trust, a person transfers control of specified assets to a trustee, to hold for the benefit of a third party. As a recent article explains, there are many different types of trusts that can help people achieve various goals. Various forms of trust can have many different benefits.
For example, if you have young children, you can set up a trust to provide a framework for when and how your estate will be transferred to your children. Through a well-planned trust, parents can manage and grow their estate, after their death. If you are caring for a child with special needs, creating a special needs trust can help to provide for that child without impacting their eligibility for Social Security Disability.
For those who anticipate estate-tax issues, a trust can assist them in postponing, reducing, and in some cases even eliminating estate taxes. If you are uncomfortable having with the idea that your estate plan will be in the public record after your death, a trust will maintain your privacy. Additionally, if you use a trust to avoid probate, you will save your heirs the time and costs associated with the process of probate.
