When it comes to creating an estate plan in Virginia, there are many different options for how to distribute assets after your passing. One option that is growing in popularity is to establish a trust, which comes with many benefits both while a person is alive and for their beneficiaries after their death. If you are curious to learn more about the benefits of establishing a trust for your estate in the Fredericksburg area, talk to the knowledgeable estate planning attorneys at Select Law Partners, PLLC. Call or contact the office to schedule a consultation today.
What is a Trust?
A trust is a vehicle that holds assets for the creator of a trust for their benefit during their lifetime, and then distributes the assets of the trust to beneficiaries named by the creator after their passing. This type of trust is known as a revocable, or inter vivos, trust and can be changed at the creator’s behest at any point during their lifetime; however, the terms are set upon the trust creator’s death.
Benefits of Establishing a Trust
There are many benefits to establishing a trust as part of your estate plan, both for you during your lifetime as well as for the beneficiaries of the trust that will benefit from its assets after your passing. Some of the most commonly cited benefits of creating a revocable trust include the following:
- Avoid the probate process: All assets placed within a trust bypass the probate process. This means that the assets do not have to go through the court process and oversight prior to being distributed as part of the larger estate to heirs. Beneficiaries of the trust are entitled to the distribution of the funds of the trust according to the trust’s terms immediately upon the creator’s passing. This saves time, money, and allows your loved ones to access assets immediately for use.
- Tax benefits: There are also significant tax benefits to creating a trust, which can be valuable to both the creator of the trust and their beneficiaries. If someone chooses to create an irrevocable trust that cannot be changed over the course of the creator’s lifetime, the assets placed in the trust can be shielded from estate taxes at their passing. The creator can also claim tax benefits for contributions made to the trust during their lifetime.
- Determine how your assets are distributed: Another benefit to establishing a trust is having the ability to determine how those assets are distributed after your passing. While a will can dictate who receives individual assets, those assets are distributed as soon as the will passes through probate. With a trust, the creator can dictate the terms of when and how assets should be distributed to beneficiaries, such as setting an age minimum or distributing assets for specific items like education or a down payment on a home.
Call Select Law Partners, PLLC Today
Are you interested in learning more about establishing a trust as part of your estate plan? Then call or contact the office of Select Law Partners, PLLC to schedule a consultation with one of our experienced estate planning attorneys today.