Creating any legal documents can feel like a chore. When it comes to retirement and end-of-life situations, it can be even more daunting. There are several avenues you could take to protect your wealth and transfer it upon your death. However, none is more effective than creating trust. These have long been used by the wealthy to convey their property to heirs, limit tax liabilities, and protect their privacy. With so many reasons to create one, you might wonder why you haven't made one yet. Let's review some of the top features a trust has to offer and why you need one.

Dictates Your Assets

Would you like to be able to dictate your assets and where they go? It doesn't have to be complicated. A trust can do quite a bit when it comes to asset distribution. You can put limitations on how you want your assets distributed after your death, including individuals needing to maintain certain standards to receive money from the trust. For example, if you want your daughter to go to college and finish, before getting money, she'll need to finish this milestone.

Avoids Time and Expense of Probate

Probate can be quite expensive. This is undoubtedly the case for more difficult estates. If there is contention to an estate or will, you'll spend longer in probate, and it'll cost more money. The good news is that you can avoid the time and expensive probate with a trust. These bypass the probate system entirely and are the preferred method for most individuals.

Who Manages Assets/Taxes

When you die, your assets will be taxed upon transfer. There are ways to minimize or avoid a certain level of taxation by having a trust drafted. Though a beneficiary will have to pay taxes on interest paid, it can be an excellent way to save money on estate taxes. A trust will also dictate who manages your assets and can even put stipulations on payouts.

Privacy

Something else to consider about your estate is how public do you want your affairs to be known? Probate is a very public forum, and everyone can have an insight into your assets and debts. A trust bypasses all of these things so that you can maintain your privacy.

Conclusion

Virginia estate planning with an attorney can help determine critical components of your will. There are two types of trusts: revocable and irrevocable. An attorney will be able to help you decide which is the best choice for you and your family's needs.