[et_pb_section fb_built=”1″ theme_builder_area=”post_content” _builder_version=”4.22.2″ _module_preset=”default”][et_pb_row _builder_version=”4.22.2″ _module_preset=”default” theme_builder_area=”post_content”][et_pb_column _builder_version=”4.22.2″ _module_preset=”default” type=”4_4″ theme_builder_area=”post_content”][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” theme_builder_area=”post_content” hover_enabled=”0″ sticky_enabled=”0″]<\/p>\n
Before addressing (in future columns) the reasons a trust can be extremely helpful, it may be helpful to know some reasons that people are told they should have a trust . . . but which may not be true.<\/p>\n
People are sometimes told to have a trust to avoid probate. Most people don\u2019t know what probate is or why they should avoid it, although the cost of probate is usually mentioned.\u00a0 <\/span>However, they don\u2019t know what probate would cost or how that cost compares to the cost of a trust.<\/p>\n Probate is a process, supervised by a judge, which ensures a deceased person\u2019s affairs\/assets are handled in an orderly manner. And while it is true that assets in a trust do not need to go through probate, I disagree that it is always better to have a trust than go through probate.<\/p>\n It is not necessarily true that the cost of creating a trust is cheaper than going through probate. Also, if the trust is not properly funded (which I will explain in a future column), probate may still be necessary!<\/p>\n I have also been asked to create a trust in order to protect assets from creditors. However, there are two important points to remember. First, if you have a current debt or a dispute that may result in a judgment, placing your assets in a trust will not protect you from that judgment.<\/p>\n Second, if you place your assets into a trust, but still retain the ability to get at those assets yourself, your creditors can get at those assets as well. There is a place for asset protection trusts but they are effective only in limited circumstances.<\/p>\n Trusts are also used to help minimize or avoid estate taxes. However, the vast majority of people do not need to worry about avoiding estate taxes.<\/p>\n There are, however, several very appropriate reasons to consider a trust. Starting next column, I will begin addressing those reasons.<\/p>\n Estate planning is far too important to leave to good intentions. Come to a free presentation to find out how a few simple steps will help ensure your estate is handled the way you want. <\/i><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" Before addressing (in future columns) the reasons a trust can be extremely helpful, it may be helpful to know some reasons that people are told they should have a trust . . . but which may not be true. People are sometimes told to have a trust to avoid probate. Most people don\u2019t know what […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[16,24],"tags":[20,40,39],"_links":{"self":[{"href":"https:\/\/wrightlawidaho.com\/wp-json\/wp\/v2\/posts\/377148"}],"collection":[{"href":"https:\/\/wrightlawidaho.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wrightlawidaho.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wrightlawidaho.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wrightlawidaho.com\/wp-json\/wp\/v2\/comments?post=377148"}],"version-history":[{"count":2,"href":"https:\/\/wrightlawidaho.com\/wp-json\/wp\/v2\/posts\/377148\/revisions"}],"predecessor-version":[{"id":377150,"href":"https:\/\/wrightlawidaho.com\/wp-json\/wp\/v2\/posts\/377148\/revisions\/377150"}],"wp:attachment":[{"href":"https:\/\/wrightlawidaho.com\/wp-json\/wp\/v2\/media?parent=377148"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wrightlawidaho.com\/wp-json\/wp\/v2\/categories?post=377148"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wrightlawidaho.com\/wp-json\/wp\/v2\/tags?post=377148"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}