People establish trusts for their estate planning for various different reasons, but these are the primary reasons:
- Tax planning: A trust can help you in multiple different situations, but one of the most common is legitimated tax avoidance, which is a common goal of any estate plan. If the value of your estate is more than $1 million, you can definitely benefit by using a trust for tax savings.
- Spendthrift children: A trust can be set up for a child regardless of his or her age if you are concerned about that child’s ability to spend money appropriately.
- Minor children: In the event that something happens to parents, a trust can give parents peace of mind that their child or their special needs child can benefit from protection down the line.
- Charitable trust: If you are inclined to give philanthropically and you may want to establish a charitable trust. A trust can help give you some control over how the funds are passed on and lead to benefits for both parties.
- Retirement management: If you want to use a trust to help manage your funds while you are still alive during your retirement, a trust can also assist you by taking care of you and your spouse when you can no longer look after your own affairs as well.
Consulting with an experienced estate planning attorney is strongly recommended. Setting up a consultation today allows for an in-depth examination of all your needs so as to craft trust planning in line with your concerns. The right Pasadena estate planning lawyer can help.
