According to Richard Blair, financial planning expert, and Founder of Wealth Solutions, every adult should have a living trust, no matter your age. Why? Blair says, using a living trust to avoid probate, manage your assets, especially in the case of a disability, will save time and undeniably, the anguish of heirs. Of course, there are several different trust accounts, as well as, various ways of setting up a trust, depending on your needs. Some trusts are general but expedient, while others focus on specific goals. Blair says, make sure that you understand the advantages and disadvantages.
“A trust is a valuable aid to busy executives and professionals who don’t actively monitor investments,” and “You can also segregate assets, which becomes a big advantage to married couples,” says Blair. Ultimately, a revocable diminishes the need for probate, and expenses. Executor’s commissions and attorney fees, and any other charges that arise from the administration of probate are eliminated. More important to families is the delay that results when you go through probate. Families are playing a waiting game while the court performs administration of the case, and that can last for several months. There have been probate cases that last for years, and have had substantial restrictions on access to the assets of the estate. Blair says a living trust avoids these types of delay.
Blair also advises having a living trust to help avoid taxes. “Assets are taxable under federal income tax,” he says. When you create a living trust, and transfer property to it, there is no gift tax. After death, that trust becomes an irrevocable, thus having stellar tax advantages.
Are there disadvantages to creating a trust? Depending on what your intent is with a living trust, there could be small disadvantages, like claims from creditors, however, the experts at Wealth Solutions are well-versed and experienced in creating a well-drafted trust. Families need security, and if you have dependents, a living trust is a monumental advantage.
Richard Blair is a registered, expert financial adviser, based in Austin, Texas. For more than 22 years of commitment and expertise, Blair has communicated with heirs, help to save on fees and timing, and advised on decisions to help provide for the needs of dependents. He is the Founder and Executive Director of Wealth Solutions, which specializes in financial, retirement and estate planning. Founded in 1994, the company also advises on profitable retirement vehicles, and personalized comprehensive plans to maximize wealth development.