Will trust is that foundation that clearly specifies how your assets and properties listed under it should be dealt with after you leave this world. Not creating a will trust means that the authority for deciding the manner of distribution of your assets is given to the law and it may not exactly be what you like it to be. Moreover, there could be a possibility of loopholes as you never know who connive in and amends the judgments for their benefits.
To disallow such possibilities and assuring that your assets are managed according to your wishes, you can opt for a will trust.
Will trust is a setting where three parties are involved in the management of the mentioned assets that are listed in the will trust. These three parties namely are the settlor, trustee, and the beneficiaries. The settlor is the person who initiates everything or on whose behalf the trust is being created in the first place. He creates trust and then transfers its authority to a trustee or trustees.
The trustee is an individual appointed for the management of the assets of the will trust and deciding as to what share of the assets or how much benefit are the different beneficiaries going to get. He can be appointed and terminated at any time at the discretion of the settlor. Lastly, beneficiaries are the individuals for whose benefit the trust is being created; they are the people who derive advantages of the income and capital gains from the assets or property being created.
Here are the top benefits of creating a will trust.
- Having a will trust assures smooth management of your assets after your death since the involvement of the trustees makes the process a lot easier. Without it, the process could be highly time consuming and stressful.
- Not having a will trust or a trust deed means that the assets are not going to be shared conforming to what you might like. They will be shared according to the law of the concerned state.
- Building a will trust aids in reducing the amount of tax to be levied on your inheritance. Otherwise, you might have to incur high taxes imposed on your assets and properties conforming to the law.
- If you have a big family or family members for that matter, having a will trust ensures that their needs are taken care of especially when they rely majorly on you for the finances. It is also beneficial when you give the benefit of your assets to someone that is not in your blood-related family.
There are different types of will trust such a bare trust, discretionary trust, living will trust, etc. It is the best testament you can have for your assets and properties. If you are still not satisfied with the above information, contact us to get thorough information about will trusts.