Setting up a trust can be a great way to protect your assets and ensure that your loved ones are taken care of after you pass away. But before you make the decision to set up a trust, it's important to understand the advantages and disadvantages of doing so. One of the biggest advantages of setting up a trust is that it can help you avoid probate court. This means that your personal and financial affairs will remain private, and you will still maintain control of your finances after you die.
Additionally, setting up a trust can reduce the possibility of a judicial challenge. However, there are some disadvantages to setting up a trust as well. For example, switching assets to a revocable trust will not save income or estate taxes. Additionally, while assets held in an irrevocable trust are generally out of reach for creditors, this is not true with a revocable trust.
When deciding if setting up a trust is right for you, it's important to consider your personal concerns and circumstances. Do you want to be able to cancel the trust, add or remove assets or income? Do you want flexibility to change beneficiaries? If so, then a revocable trust may be the right choice for you. Another advantage of setting up a revocable living trust is that upon death, assets held in the trust will evade succession. This means that assets can be passed to heirs without involving the courts, which can save time and money.
However, there are some financial disadvantages to setting up a family trust as well. For example, there are no tax benefits associated with setting up a living trust. Additionally, since you are still alive when you create a living trust, you will need to appoint yourself as trustee and maintain control of all your assets. In addition, it's important to consider the role of the State Growth Department when deciding if setting up a trust is right for you.
The State Growth Department supports economic growth and facilitates the creation of jobs and opportunities for Tasmanians. Finally, if you are considering setting up a revocable living trust as part of your estate planning strategy, it's important to consult with an experienced North Carolina estate planning attorney. There is a lot to consider when making this decision, and an experienced attorney can help guide you through the process.