With a trust, distribution of the estate to the heirs could be easily accomplished within a month, instead of a year or longer with a will.
Overland Park, KS (PRWEB)
September 26, 2017
National Estate Planning Awareness Week, October 17-23, was instituted to help people understand what estate planning is and why it is a vital component of financial wellness. In honor of the week, attorney Daniel Dorsch, founder of The Dorsch Law Firm LLC, shares the following five tips on why a trust is essential to the estate planning process:
No. 1: Avoid probate. “Since the property is no longer in your name as an individual, but is now in your name as trustee, this action totally avoids one’s heir(s) from having to go through the cumbersome, burdensome and typically lengthy probate process,” said Dorsch, who has been practicing law for over 30 years. “With a trust, distribution of the estate to the heirs could be easily accomplished within a month, instead of a year or longer with a will.”
No. 2: Privacy. The trust will remain entirely private. Unlike a will, which has to be filed as a public record in the Probate Court, the trust remains a private document, even after one’s death.
No. 3: Determine how much and when heirs receive their inheritance. “If you believe your heirs are too young or immature to handle the money you will leave them when you die, you can use a trust to determine when they will receive the money and how much they will receive each time,” noted Dorsch. “For example, you can leave instructions that say, ‘When my child reaches 30, they get 1/3 of their designated share; when they reach 35, they receive another 1/3 portion; and when they reach 40, would receive the final 1/3, or the remaining balance of the estate.’ This is totally contrary to a will, as once probate is concluded, the entire estate is immediately distributed to the heirs.”
No. 4: Protect the surviving spouse and any children from a previous marriage. “In the context of a second marriage, the trust is an excellent way to protect the surviving spouse and any children from a previous marriage,” concluded Dorsch. “If you have property in another state, the trust will eliminate the required probate proceeding…