Trusts are an estate planning tool and are often used to solve problems that other forms of ownership cannot. There are many different types of trusts with different purposes.
A revocable living trust is often used to avoid the probate process. This type of trust lets you keep full control of trust assets while you are alive and competent. At your death or incapacity, your designated successor trustee will step in to manage or distribute your assets as you directed in your trust document. Trusts are not reserved for the rich and famous; many families of modest means benefit greatly from trusts. Various kinds of trusts can help you:
-Provide for continued investment management in the event of your incapacity
-Ensure an orderly distribution of assets when you die
-Fulfill charitable goals
-Plan for minor and/or incapacitated children
A good first step when considering estate planning is to surround yourself with a competent team of advisors, such as a Financial Advisor, an Estate Planning Attorney and a CPA. Using a team approach will help ensure that all of your needs, including estate planning, are addressed in a comprehensive fashion.
Next time we will discuss probate and why you want to avoid it.
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).