When most people think about their estate plans, they often believe a will is the only legal document they need. However, other aspects of the planning process can protect your legacy and assets. Establishing a trust provides many benefits, including ensuring that the person’s assets and property are managed according to their wishes during their lifetime and after death. Learn more about the benefits of establishing a trust in Wisconsin.
Establish the Right Trust for Your Needs
There are two types of trusts: revocable and irrevocable trusts. With a revocable trust, you can make changes after establishing it. On the other hand, an irrevocable trust cannot be changed without a court order or approval by its beneficiaries. While both trusts offer plenty of benefits, consider your needs to select the right one for your family.
If you are considering this option for your estate plan, here are some benefits of establishing a trust in Wisconsin.
Avoid the Probate Process
A deceased person’s assets must pass through probate court to verify and distribute them according to the will. But any assets in a trust usually do not have to go through this process. Remember that trust agreements are private, while a will can become a public record. By establishing a trust, the individual will only have to contact their attorney and trustee to execute the trust agreement. If privacy is a concern for your estate, then establishing a trust may be an option.
May Offer Tax Benefits
Any contributions to a trust could be subjected to a gift tax requirement. However, assets in an irrevocable trust are often not taxed. Individuals and married couples can also make an annual exclusion gift to the trust without paying an additional gift tax.
Currently, those limits are:
- $15,000 for individuals
- $30,000 for married couples filing a joint return
Set Specific Parameters for Asset Use
With establishing a trust, individuals can customize their estate plans. There can be a condition set for age attainment parameters or specifications on the usage of assets. For example, you can specify that the monies in the asset may only be set aside for a grandchild’s college tuition. These provisions and parameters can all be outlined within the trust’s legal documentation.
Trusts Assist Throughout Illnesses and Disabilities
While a will becomes effective after a person passes away, a revocable trust can help an individual’s family if they cannot manage assets because of an illness or disability. In those cases, the trustee is responsible for paying bills, making distributions, and filing tax returns. These provisions can safeguard family members during any unexpected circumstances.
With a revocable trust, an amendment is used to change the agreement terms. These trusts allow individuals to alter the trust according to life’s circumstances. Whether you welcome a new grandchild or want to support a charitable cause, these trusts may be a better option than a will alone.
Choose Experienced Wisconsin Estate Planning Attorneys for Your Trust Needs
Establishing a trust can provide for family members and other loved ones. While a trust helps simplify the asset distribution process, it can also offer you and your family many benefits. If you want to set up a trust in Wisconsin, the Collins Law Firm provides comprehensive 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 helping individuals like you to build and fight to protect your legacy. Contact us or call (414)-207-6292. Schedule your free and confidential consultation today!