Creating a trust is an essential part of estate planning that can help protect your assets and provide for your loved ones. In this guide, Mark Fishbein, an estate planner with over 40 years of experience, and his team at Alta Estate will explore the many benefits of creating a trust, the different types of trusts available, and the key components and steps involved in setting up a trust.

Benefits of Creating a Trust

According to Mark Fishbein, a trust can provide numerous benefits, including probate avoidance, and tax minimization. In addition, trusts can include provisions that specifically protect assets from creditors. For example, you can include a spendthrift provision that prevents beneficiaries from assigning or selling their interests in the trust, which can help protect those assets from creditors. Additionally, a trust can help avoid probate, which can be time-consuming and expensive, and help minimize taxes, as assets held in a trust may be subject to lower tax rates than those held outside a trust.

Different Types of Trusts

Several types of trusts are available, each with unique features and benefits. Some of the most common types of trusts are living, testamentary, revocable, and irrevocable. Mark Fishbein and his team at Alta Estate can supply you with the information to help you determine the proper type of trust for your needs and circumstances. For example, a living trust is popular because it can help avoid probate and provides more flexibility than a testamentary trust, which only takes effect after your death.

Key Components of a Trust

The key components of a trust include the settlor (also referred to as the "trustor"), trustee, and beneficiaries. Mark Fishbein and his team at Alta Estate can help you understand these components and how they work together to achieve your goals. The settlor is the person who creates the trust and transfers assets into it. The trustee is the person or entity responsible for managing the assets in the trust and distributing them to the beneficiaries according to the terms of the trust document. Finally, the beneficiaries are the individuals or entities who will receive the assets held in the trust.

Steps to Set Up a Trust

Setting up a trust involves several key steps, including identifying your assets, choosing a trustee, creating the trust document, and funding the trust. Mark Fishbein and his team at Alta Estate can guide you through each of these steps to ensure your trust is appropriately created and serves your intended purposes. First, to identify your assets, you should create a comprehensive inventory of all your assets, including real estate, investments, and personal property. Next, when choosing a trustee, selecting someone trustworthy, competent, and willing to serve in this role is essential. Next, you can create the trust document with the help of Mark Fishbein and his team at Alta Estate, who can help you customize the document to meet your specific needs and goals. Finally, funding the trust involves transferring assets into the trust and re-titling them in the name of the trust.

Seek Professional Guidance

Setting up a trust can be a complex and detailed process. Therefore, it is essential to seek professional guidance to ensure your trust is appropriately created and serves your intended purposes. Mark Fishbein and his team at Alta Estate have the experience and knowledge to help you determine the correct type of trust for your needs, customize your trust document, and guide you through funding and managing your trust.

Costs of Creating a Trust

It's important to note that there are costs involved in creating and managing a trust. Attorney, trustee and other associated expenses can add up. However, Mark Fishbein emphasizes that the benefits of creating a trust can far outweigh the costs, making it an excellent option for many individuals and families.

Creating a trust is an essential part of estate planning that can help you achieve your financial goals and provide for your loved ones. By understanding the benefits of creating a trust, the different types of trusts available, the key components and steps involved in setting up a trust, and seeking professional guidance from an experienced estate planner like Mark Fishbein and his team at Alta Estate, you can create a trust that meets your specific needs and helps secure your financial future.

The text above is for general informational purposes and should not be considered legal advice. For more information, click Contact Us. Follow Mark Fishbein on LinkedIn or Facebook.