If you currently reside in Missouri and are trying to figure out the best way to preserve your legacy for those you love most, you may be giving some thought to potentially establishing a trust. While many people do not fully understand trusts or exactly what they entail, they can prove to be an extremely worthwhile estate planning strategy that can help you hold on to more of your wealth for future generations.
While CNN Money reports that trusts come in an assortment of forms, and that every form differs to some degree in terms of benefits and potential drawbacks, there are certain advantages of trusts that hold true in most cases. For example, in many cases, assets you place into a trust do not factor in to the overall value of your estate. This means that moving assets into trusts can be a great way to minimize the amount of tax owed on your estate after your passing.
Additionally, in many situations, you can protect your assets from potential creditors or lawsuits by moving them into a trust. In other words, if someone files a lawsuit against you and you lose, no one can force you to turn over the money you already have secured in a trust.
Placing assets in a trust also typically means that your beneficiaries can receive their designations without having to go through the trouble or expense of the probate process. In many cases, probate-related costs can eat up as much as 5 to 7 percent of your entire estate, and the process can also prove timely, often taking six months or more to complete.
While this information about some of the main advantages of trusts is educational in nature, it is not meant to serve as legal advice.