Estate planning practices help you protect your assets and lower the impact of the probate court. After you die, your estate goes into probate, and creditors can seize assets if you have outstanding balances. Trusts are a beneficial way to separate assets from your estate and prevent them from going to probate. Consulting trust lawyers near Cicero helps determine what trust is right for your estate.
Setting Up a Trust
When setting up a trust, comparing the two types is best. A revocable trust allows you to transfer assets from the estate, but you still have the option to remove them from the trust. You can also make changes such as who your beneficiaries are, how your assets are distributed, and how to manage the trust.
The benefits of using a revocable trust are that you can end it whenever you want without penalties, and it becomes an irrevocable trust after you die. However, with a revocable trust, your beneficiaries will still have to pay estate taxes because you own the trust yourself. Speaking to trust lawyers near Cicero helps determine if a revocable trust is an appropriate option.
How Is an Irrevocable Trust Different?
After establishing an irrevocable trust, you cannot change it. All your decisions are final, including your successor and beneficiaries. The only parties that can change
the trust are your beneficiaries, and only after you die. The advantage of using this trust is that your heirs won’t pay estate tax.
Estate planning gives you more advantages and asset protection. Establishing a trust helps you protect assets by separating them from your estate. The type of trust you need depends on how you want to manage your assets while living. Contact Koch and Associates P.C. Attorneys at Law to learn more about trusts, or visit the website now.
