By Steven Muller
Many people go through their entire lives trying to build up wealth for when they retire. It’s an important financial decision that a person or couple needs to make and one that is wise to endeavor in. Taking the next step in planning for your future includes deciding how their estate will be taken care of after death. No one wants their lifetime of work to be taxed and charged fees on and ones heirs receive less than they should. There are ways in which people can avoid having this happen to them. One of these solutions is creating a living trust.
A living trust does not save you any money while you are alive, but they do get rid of probate fees and they can reduce or eliminate federal estate taxes after death. In a basic living trust you transfer the ownership of your property to the living trust. You become the trustee and you don’t give up control of your property that you just put in trust. In the document written is who will inherit the trust property after your death. When that does happen the person that is set to receive the trust is transferred ownership of the property. This saves cost on probate fees and lawyer fees in dealing with property after death. If the net worth of the deceased is worth over $650,000 than a living trust can also help with tax-savings. A living trust is a great way to avoid unnecessary costs to your loved ones on your estate and an option that all should consider.
Sources:
http://www.inc.com/articles/1999/10/14509.html
http://www.calbar.ca.gov/state/calbar/calbar_generic.jsp?cid=10581&id=2212#trust1
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