It takes more than just a will to protect your assets and other property in life. Why? There are so many things that can go wrong in life that can take your assets away from you. A trust is one way to help protect your assets, no matter how much they are worth or what they are. Today, the team from Giro Law provides seven important reasons why you should create a trust even if you already have a valid will.
Tax Cuts are Only Temporary
One of the most important reasons you need to create a trust is that the tax cuts signed into law in 2017 will only be temporary. This means that the taxes will change again in 2026. There is a federal estate tax exemption right now worth $11 million. In 2026, it is expected that the estate exemption will drop back to $5 million. This means that even though your estate might not be taxed right now, it more than likely will be come 2026.
Ability to Avoid Probate
If you happen to fund the trust you create while you are still alive, it will help you avoid probate. This means that your surviving family members will not have to appear in front of a judge to prove your will is valid and they will have immediate access to your assets upon your death.
Limit a Child’s Access to Their Inheritance
You might know now that you want to leave your grandchildren a large sum of money upon your death. Well, a trust can help limit that child’s access to the inheritance you leave them. You can put a trustee in place to manage the money in the trust until the children reach the legal age of adulthood in New Jersey.
Protect Inheritance in a Divorce
Not every marriage will end happily ever after. You can protect the inheritance you leave behind from being split up in a divorce. For example, if your adult child gets divorced, a trust can help prevent their former spouse from taking all of the inheritance you are leaving that adult child.
Protect Against Lawsuits and Creditors
Lawsuits crop up all the time and creditors can be a serious problem. Do you have a beneficiary in your will who works in a business that is prone to lawsuits? If so, you can create a trust to protect the assets from being taken in a lawsuit.
Prevent Bad Money Choices by Your Spouse
There is no telling what your surviving spouse might do with your money once you are gone. They might jet set to Bermuda, buy a new car, or build a home. They might also fail to leave any money to your children. A trust can make sure that your surviving spouse does not make bad financial decisions.
Plan for Incapacitation
There is no way to know if you will ever become too sick to make financial decisions for yourself. A trust, if funded while you are alive, can help pay for medical care when you are incapacitated. Just name someone to serve as your successor trustee and he or she will be able to use the money in the trust to help care for you.
Ready to Create a Trust? Call Giro Law Today
Are you ready to create a trust to protect your assets? A trust will add an extra layer of protection on top of a will to prevent your assets from getting into the wrong hands. If you need to create a trust, it is time to contact the experienced team from Giro Law. Call our office at (201) 690-1642 to schedule an appointment today.