What Trusts can add
Once assets are ready to be transferred to beneficiaries, it's important for all beneficiaries to be ready to receive what could be a substantial amount in the eyes of the beneficiaries.
Trusts can hold assets until certain benchmarks are reached, typically a responsible age.
Money can be distributed prior to a designated age for reasonable education, health and support needs, as deemed by the Successor Trustees you appoint.
Your executor's job can be made easier.
No Contest Clauses typically disinherit anyone legally contesting the estate, which can freeze an estate for years.
Trusts can maintain a residence for children & their guardians. Mortgages, taxes and expenses can be paid from your living trust until children finish school, at which point the property can be sold and distributed.
A trust can help special needs beneficiaries receiving disability income. An inheritance may interfere with their payments so a trust can withhold their share unless a distribution is needed.
Trusts can maintain a residence for a spouse in a blended family until he/she no longer resides in the real estate owned by the trust.
Married couples can double their estate tax exemption. If your estate (including life ins) is under $2M in '08 or $3.5M in '09 there's little worry for estate taxes. Portions of estates over that limit are subject to hefty taxes of nearly 50%.
