If you’ve created an estate plan that specifies how much your family will receive after your passing, you may already have the peace of mind that you are looking after your loved ones. However, despite your best planning efforts, your family may still not receive precisely what you intended them to.
Every year, inheritance taxes claim billions of dollars from beneficiaries. Taxes, ex-spouses and creditors can all reduce how much your family inherits after your passing. Is it possible to protect your family’s inheritance by reducing the amount that gets siphoned off the top?
How a trust can help
While many things can diminish the value of your estate before your loved ones receive it, a single solution may be able to offer protection against all of them. Creating a trust allows you to protect your assets and ensure that they are distributed to the designated beneficiaries in a specific manner. In addition to saving beneficiaries time and paperwork during the probate process, it is also possible for a trust to reduce or eliminate inheritance taxes.
There are multiple types of trusts that all offer different benefits. Depending on your unique needs, one trust may be more beneficial than others. An estate planning attorney can help you understand the best solution for your situation.
Ensure your loved ones get what they deserve
You won’t always be around to protect and provide for your family. But there are steps you can take to ensure that they are cared for – even when you’re gone. Learning about the different estate planning options available to you is an important first step.