4 Reasons for trusts in estate plans
A trust lets you avoid the public process of probate
A Will is subject to probate. The probate application must
list all the assets of the deceased and their value. This
list – the terms of your Will – is available to
any member of the public who may be interested in knowing
and is willing to pay a small fee. This is not the case with
a trust.
A trust allows you to avoid probate. If you are concerned
about privacy, a trust will ensure that your financial affairs
are treated with the highest level of discretion and confidentiality.
No information on the creator or beneficiaries of the trust
or on the contents of the trust deed is available to anyone,
except through legal process.
A trust is more powerful than a Will in ensuring your
wishes are carried out
The terms of a Will can be challenged. Any child of the deceased
can ask the court to rewrite the will if the child is not
satisfied with its provisions. The courts then decide if the
deceased has fulfilled his or her moral obligation to the
child. And “moral obligation” has nothing to do
with the financial need of the child.
Given the increasing tendency of our society toward litigation,
more and more Wills are being challenged. A trust can help
avoid this.
A trust is a much more powerful legal instrument than an
ordinary Will. It will allow you to better control who will
inherit your assets and how they will inherit them. It will
also allow you to avoid the adverse consequence of forced
heirship or succession laws if they should apply.
A trust helps you optimize your estate’s tax situation
Creating a trust often makes it possible to defer or reduce
taxes. In fact, one of the most common goals of a trust is
to ensure that wealth is transferred to one’s heirs
and beneficiaries in the most tax-efficient manner.
A trust allows you to create unique financial solutions
Because a trust is a highly flexible legal instrument, it
will allow you to have financial solutions tailored specifically
for you, to meet your unique needs.
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