Why do I need a Trust?
A Trust or Living Trust, which can be revocable or irrevocable, creates a legal contract that specifically distributes and manages assets set in the Trust. Irrevocable trusts can allow you to take advantage of various tax benefits, avoid probate, preserve your privacy, and manage various aspects of financial administration.
A Trust allows you to make financial plans for your assets after your death. During the creation of the Trust, you designate a Trustee (and often successor trustees) to administer your Trust in accordance with its provisions. Designated beneficiaries in your Trust will be entitled to the Trust assets when certain pre-defined events occur.
A Trust may also be used to provide for care of individuals with special needs or disabilities, allowing them to benefit from trust assets without the loss of government benefits.
Irrevocable Trusts are often used to help in tax planning and Medicaid planning.
Unlike Wills, Trusts are not administered by the Probate Court, thereby allowing the Trust and any assets owned by the Trust to bypass any Probate proceedings, thus minimizing costs, fees, and estate tax liability. After a Trust’s creation, it continues to independently exist under the management of the Trustee or Successor Trustee, until the purpose for which it was created is either fulfilled or is otherwise no longer relevant.