Benefits of Trust Planning and Common Estate Planning Mistakes

December 8th, 2020 by admin Leave a reply »

Trusts are basically a document that involves the transfer of ownership of property and or assets from a Grantor (original owner of assets and property) to the TRUSTEE (the one who manages the assets; a lawyer, accountant, best friend, or anybody not related to the grantor by blood and marriage) for the BENEFICIARIES (people who will receive the full benefit of the assets; family, best friend, favorite charity and organizations, the list is unlimited). There are two common types of trusts, the first is the irrevocable trust, where the grantor surrenders any control whatsoever of, and any access to the property and or assets. Otherwise, if the grantor wishes to have control over the assets, it will become revocable and subject to court discretion. Also, irrevocable trusts are permanent, the trustee wields total control over the assets, thus, if the grantor finds something not to his liking, it could not be changed. So the grantor now needs firm trust planning to take care of their estate. The grantor as well as the beneficiaries cannot afford any estate planning mistakes.

Trust planning means that you intend to take care of your family’s well being and estate. Most people fail to make estate plans or avoid estate trust planning, often leaving their loved ones in the dark when they start to spend large amounts of money, (money they thought they saved by not trust planning) on trying to figure out what to do if they become disabled or what becomes or the family estate when they die. All unwanted events could be avoided through thorough and concrete trust planning.

On the other hand, this type of planning can be also called as estate planning. You should pay attention to the details. Little things can increase the expenses for you and for your family. When planning your estate, after including all the little things like a couch or a grandfather clock, make sure you include the specific beneficiary. Most people spend more money than what the asset is worth just fighting for ownership of it. Planning should involve you asking every member what they want.

Tips

To make sure that your plan is solid, get some more help to avoid making estate planning mistakes. Browse the web for more information and tips about trust planning and estate planning. The more you know about it, the more secured and thorough your trust planning is…the more secured and thorough trust planning you make, the more you could provide for your family. Trusts are documents that decide how your assets are to be managed and who benefits from it. It would be best to help your family avoid any squabbling, plan your estate with sound advice.

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