What is a Trust and what are the benefits
Trust holds the property of the beneficiary even after his
death. A trust saves time and money of a probate, a legal process of
transferring the assets or property to next generations.
The main difference between a Trust and a Will is the fact that your property
won’t go through probate when you die. With a Will the transfer of property
takes place at your death and will need to go through the court system,
(probate) to determine the legalities of the will and the properties being
dispersed. During probate much of the estate is taken by taxes and sometimes
attorneys. When you create a Trust you transfer your properties to it while you
are still alive and it continues on through your death.
It is believed that trusts were started during Roman Empire.
trusts are two types.
Living Trust
Testamentary Trust
A Living Trust is created and instated
while you are alive. A Testamentary Trust is carried out after your death from
instructions given while you were alive.
Benefits of a Trust
No legal process to transfer the estate or
property after you die
Privacy of the trust details are not
public
tax planning is possible in trusts
Trust can have creditors protection
