Trusts Poised to Become More Commonplace

Many think of trusts as estate planning tools of the wealthy. While true one benefit of a trust is reduction of estate taxes (which impacts only a small percentage of the population), the numerous other benefits of trusts are making them more attractive estate planning tools for the middle class.

In addition to managing estate taxes, trusts, depending on how they are structured, can also:

• Provide for heirs with disabilities and those who are under 18. Trusts can be structured for disabled heirs so any government benefits for which they qualify will not be jeopardized. For heirs under 18 who inherit funds without the benefit of a trust, guardians typically must acquire recurrent court authorization to administer the minor's assets – a trust makes this unnecessary.
  
  
• Shield assets from creditors. Because the trust owns your assets rather than you, it is difficult for creditors to claim them.
  
  
• Ensure inheritance by your children. In this day of divorce, re-marriage, and blended families, a trust can be used to ensure your children (not your surviving or ex spouse's future children or stepchildren) receive your assets.
  
  
• Allow for management of your affairs in cases of your incapacity. A trust can be created to manage your financial matters should you become temporarily (or permanently) unable to do so.
  
  
• Keep your distributions private. Wills are subject to probate proceedings during which, your will becomes part of the public record. Because trusts do not go through probate, the terms of your trust can be kept private.

Source: The Wall Street Journal, 6-26-06

home | elder law | wills and trusts | estate and estate tax planning | charitable tax planning
faqs | bios | resources | news and articles | contact us

Serving Worcester County, including Worcester, Shrewsbury,
Northborough, Westborough, Sturbridge, and Harvard

© Copyright Smith Worthington, LLC, Counsellors-at-Law
102 Shore Drive, Suite 100 Worcester MA 01605
Just across the street from the Greendale YMCA. Plenty of free parking.
Phone: 508-853-1900 Fax: 508-853-1777
Email: markw@ma-estateplanning.com Web: www.ma-estateplanning.com

The material on this page or email messages sent to markw@ma-estateplanning.com
does not constitute legal advice or create an attorney client relationship.

Certified as an Elder Law Attorney by the National Law Foundation, a private non-profit organization accredited by the
American Bar Association, but whose standards for certification are not regulated by the Commonwealth of Massachusetts.