What are the benefits of trust planning?

Posted on:

July 11, 2024

Trusts have gained significant popularity in personal estate plans due to their numerous potential benefits. They are specifically tailored to the person setting them up. Whether you want to pass your assets to the next generation, protect yourself from potential creditors, prevent wasteful spending by young heirs, or minimize estate taxes, there’s likely a trust that suits your needs.

Benefits to setting up a trust may include:

Flexibility: Trusts can be customized to meet the specific needs and preferences of the individual establishing them.
Privacy: Unlike public probate proceedings, trusts operate privately, allowing for discreet management of assets.
Ease of Administration: Trusts streamline the process of asset distribution and management.

A revocable trust is the most common type of trust. This type of trust can be changed even after it is set up. On the other hand, irrevocable trusts are not able to be changed. These trusts can be an excellent option for estate tax planning.

When trusts are appropriately structured and funded, they likely offer the significant benefit of bypassing probate. Probate, a public court process, can be time-consuming and costly. Trust planning provides a potential avenue to avoid probate.

Contact your local Federated^® marketing representative to discuss this important topic with our network of attorneys, who specialize in trust and estate planning.

Federated Insurance is an ACCA Platinum Corporate Partner. For more information about our Corporate Partner program, visit here or email ACCA’s Strategic Partnerships Manager Kenzi Vizzari at kenzi.vizzari@acca.org.

This article is for general information and risk prevention only and should not be considered another other offer of insurance or legal, financial, tax, or other expert advice. The recommendations herein may help reduce, but are not guaranteed to eliminate, any or all losses. The information herein may be subject to, and is not a substitute for, any laws or regulations that may apply. This information is current as of its publication date and is subject to change. Some of the services referenced herein are provided by third parties wholly independent of Federated. Federated provides access to these services with the understanding that neither Federated nor its employees provide legal or other expert advice. All products and services not available in all states. Qualified counsel should be sought with questions specific to your circumstances. All rights reserved.

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Federated Insurance

Through valued business insurance products and proven risk management strategies, Federated Insurance offers peace of mind to contractors nationwide. Federated Insurance has been an ACCA Corporate Partner since 2009. ACCA’s recommendation of Federated helps ensure that association members receive personalized service, coverages tailored to their individual business needs, and assistance with their risk management efforts.

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