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Why trusts can be useful for estate planning

On Behalf of | May 29, 2020 | Trusts

There are many things that people in Virginia must plan for throughout their lives. These plans are important in order to ensure that things happen in accordance with how people want them to go or how they envision a certain outcome. While it is not something that people may want to think about all the time, it is also important that people plan for their death as well. This is important to ensure that people’s belongings and property end up with the people they want to have it.

There are a couple different methods that people can use to ensure this occurs. People can draft a basic will which states who they would like to receive the property. Wills can also appoint guardians who would care for any minor child if the parents pass away before the children are 18 years old. Another method people can use is a trust, which also state who will receive which property, but there are extra features of a trust which can make them very useful for estate planning purposes.

Trusts are different than wills because people’s property is actually transferred to the trust while people are still living. People still can maintain control over their property by being the trustee, but technically the trust owns the property. This has benefits when people die because the successor trustee can transfer the property directly to the beneficiaries without having to go through the probate process or court involvement. Also, trusts can be effective in helping couples having to pay potential estate taxes twice. Trusts can also control when children would receive property as opposed to them receiving it right away regardless of their age.

People in Virginia cannot take anything with them when they pass away and its important to prepare the proper documents to ensure their property goes to the correct people. Trusts accomplish this goal and also have the added benefit of avoiding probate and others which can make life much easier for their loved ones after they pass away. These are technical documents though and consulting with an experienced attorney could be helpful.