{"id":2803,"date":"2013-04-29T14:10:18","date_gmt":"2013-04-29T20:10:18","guid":{"rendered":"http:\/\/bgs.com\/?p=2803"},"modified":"2013-04-29T14:10:18","modified_gmt":"2013-04-29T20:10:18","slug":"the-benefits-of-setting-up-a-trust","status":"publish","type":"post","link":"https:\/\/www.bgs.com\/blog\/2013\/04\/29\/the-benefits-of-setting-up-a-trust\/","title":{"rendered":"The Benefits of Setting up a Trust"},"content":{"rendered":"

Setting up a trust can convey many estate planning benefits. However it\u2019s important to set up the right trust for the right situation and to get a qualified estate lawyer<\/a> to help you do the job correctly.
\nTrusts can help you avoid probate because they name a beneficiary. If you\u2019ll recall from our previous discussion on probate, assets with a living, named beneficiary rarely, if ever, have to go through probate.
\nTrusts can also reduce the amount of estate taxes that a beneficiary might have to pay.
\nHowever, you have to set up the trust correctly. There are different kinds of trusts with different rules governing them.
\nAn after-death trust actually does, for example, put your assets right back into probate. Those assets then go on to fund the trust.
\nThe after-death trust is administered by a trustee and may be overseen by the court.
\nYou may think there\u2019s no good reason to use the after-death trust because of the probate process, but there are situations where it\u2019s appropriate. In some cases it\u2019s a good vehicle for transferring assets to minor children or for transferring assets to disabled adult children.
\nLiving trusts are created while you are still alive. You become the trustee, and someone you designate becomes the beneficiary.
\nRevocable living trusts allow you to make changes while you\u2019re still alive. If the trust is irrevocable you can\u2019t make changes. Both have legal and tax consequences.
\nThere are other types of trusts as well. Some common examples include:<\/p>\n