Asset protection is critical for anyone who has assets and wealth. Without it, their families could lose their inheritance, and creditors could seize the entire estate. Estate planning practices pinpoint the most suitable options for preventing probate-based asset seizures and financial losses. Hiring a Cicero trust lawyer lets you set up a proper estate plan and protect your assets.
What is a Trust?
Trusts are fiduciary establishments where a trustee holds your assets outside your estate. Essentially, the estate owner transfers ownership of certain assets to the trust. Separating the assets from the estate decreases its value. Technically, there isn’t documentation showing that you own the property after the transfer. The trust is the owner.
How Does a Trust Work?
There are two types of trusts. An irrevocable trust is set up for permanent transfers out of the estate. The owner cannot remove assets from the trust once transferred. You can transfer assets out of a revocable trust whenever you want.
You choose a successor when setting up the trust. The successor gains control over the trust and its assets when you die. If you want to leave assets to a loved one, you can name them the successor. They take over the trust and use the assets however they wish. Instead of waiting for an executor to read your will and manage ownership transfers, the loved one gets the assets immediately.
What are the Benefits of a Trust?
As a Cicero trust lawyer can explain, the benefits of a trust include asset protection, and the assets never go through probate. Your successor gets the trust without facing inheritance taxes. Creditors cannot seize assets that aren’t part of your estate.
Establishing a trust helps you remove assets from your estate and lower its value. Trusts are suitable ways to avoid probate and property seizures by creditors. Creating a trust is part of estate planning, and you’ll need an attorney to help you. Contact Koch & Associates P.C. Attorneys At Law to establish an estate plan and create a trust.
