A variety of trusts exist for many different purposes.
Some people have established trusts in order to protect assets from being overly taxed once they are gone. Some estate taxes can be avoided by a proper trust establishment. The tax exemption is currently at an historic high level and may lead some to believe the usefulness of a trust has diminished. In actuality though, trusts are useful for more than just lowering tax consequences.
Trusts can be Income-Producing
A trust can be established to provide money for your grandchildren or beneficiaries for many years to come while still providing income for a spouse or loved one during his/her lifetime. Interest from a trust can provide income for monthly living expenses for a spouse while the principal of the trust can remain intact until the spouse dies, at which time the principal is passed on to beneficiaries. Trusts can be managed to grow over time, to promote business development, or to provide for your favorite charitable causes.
Direct Funds through a Trust
Trusts are an important tool for directing how an inheritance will be used. The person who establishes the trust may serve as Trustee until such time he is no longer able, or he may hire a professional trust management company to manage the funds of the trust.
Experienced Estate Planning and Trust Attorney Elga Goodman can help you understand your many options using Trusts. Contact us today at 973-841-5111.