The advantages of trusts

Oklahoma residents who possess a estate of some size that they wish to protect and pass on to the next generation may wish to do some research on the possibility of setting up a trust. Although a trust is not necessary for everyone, those who have special conditions for their bequest or intend to leave a significant amount of money when they pass away may find them to be efficient tools for their purposes.

Trusts can be beneficial to people with a wide variety of specific estate planning needs. They are designed to be continually administrated by a trustee after the death of the beneficiary, so they may carry out more precise requests and bequests than a will could. For example, a trust can be used to provide for the long-term care of a beneficiary who cannot be relied upon to responsibly handle a large sum of money. They can also be used to make certain the grandchildren inherit as well as the children.

Trusts also excel at the protection of the estate from the fees and delays associated with probate. Individuals with substantial holdings in collections of art, real estate or shares in a corporation could benefit from the use of a trust. Bypass trusts are an effective device to up a surviving spouse to continue to make contributions to the inheritance.

A qualified personal residence trust can be used to remove the value of a single home from the estate, which is particularly useful in areas with appreciating real estate costs. These and other types of trusts may be more completely described by an attorney who has experience in estate planning matters.

Source: CNN Money, "Estate planning: Is a trust beneficial?", November 17, 2014

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