Protecting assets and property are a major concern for many individuals in Wisconsin. With a trust, you have an effective tool that will ensure these assets remain safeguarded throughout your lifetime and are distributed according to your wishes. While it may seem like a trust is the best option, you still need to weigh the benefits and risks of this estate planning tool. Here’s everything you need to know about establishing a Wisconsin trust, protecting your assets, and maximizing tax benefits.
Why Choose a Trust?
A trust is a legal arrangement where the grantor transfers their assets to this designated legal entity. The trustee (selected by the individual (grantor) who established the trust) manages the assets on behalf of the beneficiaries according to the trust document terms. These beneficiaries can include:
Individuals place their assets in a trust for various reasons, from minimizing taxes to protecting wealth. There are many types of trust, but the most common ones are revocable and irrevocable trusts. A revocable trust can be modified, while an irrevocable trust will need approval from the beneficiaries or a court order to make any changes.
How Can a Wisconsin Trust Protect Your Assets?
While in an irrevocable trust, the assets are protected from lawsuits and creditors in most situations. However, there are limitations to these protections, and creditors may still have access to your assets in a few situations. If you transfer assets intending to defraud creditors or avoid lawsuits, the courts can make them available to those parties. For those who have a revocable trust, since the terms can be changed, these assets are not protected from creditors, lawsuits, or court orders.
Are There Tax Implications with a Wisconsin Trust?
Establishing a trust in Wisconsin can provide several tax benefits, depending on the type of trust and your specific circumstances. Some individuals create a revocable trust to avoid the probate process, while a living trust will transfer your assets after your death. With an irrevocable trust, you can minimize your estate tax liabilities. A charitable trust can reduce income tax liabilities, allowing you to receive a deduction on the contributions to the trust.
What Is the Best Way to Establish a Trust?
Anyone wanting to establish a trust should work with an estate planning attorney. During this time, you will need to create a trust document that specifically outlines the trust’s terms and conditions.
Setting up a trust can be complex, but there are significant benefits to ensuring these assets remain protected and disbursed to the right individuals, charities, or organizations. With assistance from an estate planning attorney, you can navigate these processes and make sure the trust is properly established in Wisconsin.
Get Help with Your Trust From Our Experienced Wisconsin Estate Planning Attorneys
If you want to set up a Wisconsin trust or have questions about any part of the process, the Collins Law Firm provides estate planning, estate administration, business law, and elder law services. We proudly serve Southeastern Wisconsin and the Milwaukee area. Our estate planning legal team has decades of experience to help you protect your legacy. Contact us or call (414)-207-6292. Schedule your free and confidential consultation today!