Perhaps one of the most popular estate planning tools is the trust account. There are a variety of different types of trust accounts that can serve a variety of purposes. A recent article discusses how you can determine whether one of these trusts may be right for you.
Whether your estate plan would benefit from a trust is dependent on what your estate planning goals are. Just a few of the many goals that a trust can serve include avoiding or reducing taxes, shielding assets from potential creditors or ex-spouses, planning for charitable giving, and avoiding the process of probate.
Depending on the nature and extent of your estate, you may or may not require trusts to meet these goals. For example, if your main goal for estate planning is tax avoidance, you may not need to set up a trust if the value of your estate does not meet the threshold value for estates that are taxed on a federal or state level.
On the other hand, you may wish to shelter some assets for your potential long term care costs, but want to maintain control over those assets. In this instance, a trust – rather than gifting the asset during your lifetime – may likely be the best solution.
For assistance in determining whether a trust is right for you, contact us at (626) 696-3145.
