In the past, planning for a time when a person passed away by providing a last will and testament, was all that most people needed to do to prepare. However, as tax laws have become more complicated, and with people who have considerable assets looking to provide for their family after they have passed away, many people have enlisted the help of an Estate Law Lawyer in Bel Air MD. While there are many things that an estate attorney can do, one thing that many people are intrigued about is a trust.
Simply put, a trust is a financial agreement where an individual allows a third party to hold assets on behalf of a beneficiary or multiple beneficiaries of a particular estate. This may seem somewhat inconsequential, but the streamlined process by which trusts work, and their ability to avoid over taxation, is beneficial.
One of the best things that an Estate Law Lawyer in Bel Air MD will point out about trusts is that traditionally, trusts allow the assets to go to the beneficiaries of the estate much quicker than if it was simply left to provisions made in the last will and testament. In addition, and perhaps this is the most beneficial aspect of the trust, is that assets are exempt from probate.
Probate, among its other processes, is used to evaluate an estate. If the estate is over $5.43M the death tax will be imposed on the estate. By being exempt from the probate process, trusts can help avoid excessive amounts of taxes. In some cases, estates can be completely tax-free if the trust is done correctly.
The fact is that trusts are somewhat complicated, and they can be mishandled, which can lead to the same amount of taxes being imposed as would be if the estate went through probate. However, to understand the nuances of setting up a trust, and in order to keep that trust in proper working order, an estate law attorney can be very helpful. If you’re thinking about setting up a trust for your beneficiaries, you may want to find an estate lawyer online and Browse the website to learn what these fiduciary transactions can do to help the beneficiaries of your estate should you pass away.