As you know, creating a comprehensive estate plan is imperative. One of the most common facets of estate plans are trusts. If you are someone who is looking to create a trust, which is essentially an agreement between the trustor, or the creator of a trust, and a third-party trustee. The trustee is assigned with the task of managing the trustor’s assets on behalf of the beneficiaries until they can do so on their own. In many cases, trusts are great strategies to implement in estate plans, however, they are not always necessary. Please read on and reach out to our Maryland estate planning attorneys to learn more about the pros and cons of creating trusts. Here are some of the questions you may have:
Why should I create a trust in Maryland?
There are many situations that call for creating trusts, including the following:
- If you are someone who wants help managing assets while you are still alive, creating a trust may be best for you.
- If you are looking to plan for how your estate’s property and wealth are distributed, you may create a trust so that you can have more control over how your assets are distributed. You may specify whether you wish for the entire amount to be paid out at once or whether you wish for the payments to be staggered.
- If you have a beneficiary with special needs, you can establish a special needs trust so they can receive your inheritance without disqualifying them from the government assistance they need.
What are the cons of establishing trusts?
There are certain cons of establishing trusts. In many cases, trusts cost more to prepare than certain other estate planning tools, and they will require you to retitle your assets in the name of the trust. This is not always a quick process, depending on your individual circumstances. Additionally, if you do not retitle your assets, there is a very good chance that those assets will not pass through the trust and will enter the probate process instead. This may cost your family time and money. Additionally, in many cases, trusts do not offer estate tax benefits or special asset protection, which means that creditors will still have the capability to gain access to assets in that trust without certain provisions in place. The bottom line is that in many cases, trusts are extremely useful, though this is not always true, which is why you should first consult with an experienced Maryland estate planning attorney to learn more about whether creating one is the best option for you.
Contact our experienced Maryland firm
The attorneys at JD Katz have years of experience compassionately guiding clients in Maryland through the estate planning and administration process. Our firm also has experience with matters of elder law, business law, tax law, and litigation. For a legal team that will put your needs first, contact JD Katz today.