Trusts Lawyers in Denver Saving You Time, Money, and Legal Headaches
Events in life often happen suddenly and unexpectedly. But where life is unpredictable, planning and preparing for the “what if scenarios” is oftentimes the only step we can take to control the outcome for ourselves and the people around us.
In looking at the bigger picture, trusts, as part of the estate planning process, can give you peace of mind and your family’s future comfort and security.
This legal tool is one component of an estate plan that can save time, money, and legal headaches down the road as it promises a private exchange of your funds and assets without the need for court involvement, among other advantages.
Because we’ve spent years working through estate planning needs with hundreds of families over the years, a trust attorney with Ragab Law Firm, P.C. is the solution you need to navigate wills and trusts, and to help shape the most effective estate plan for maximum asset protection designed for the long haul.
Our attorneys will help you make the tough decisions now so your family can reap the benefits later. Book an initial consultation with a knowledgeable trust attorney with Ragab Law Firm, P.C., and explore our estate planning solutions today: 303-557-2011.
What is a Trust?
A trust is a fiduciary relationship in which one party, the trustor (or owner of the trust) gives another party, a trustee, the right to hold, manage and distribute assets in the event of the original owner’s incapacitation or death.
As a key takeaway, a trust provides greater flexibility and control over how your property and assets are distributed, and when. Trusts also go into effect immediately, unlike wills which are only relevant after death.
In addition to providing for your heirs, you can find broader protection in a trust when you need to plan for special needs children or have a desire to donate funds to your preferred charities when you’re gone. There are three types of trusts that serve different purposes. Our trusts lawyers with Ragab Law Firm, P.C. can help you determine the best option based on your current assets and goals.
- Revocable living trust: Also known as a living trust, revocable living trusts are used to prevent your estate or multiple properties from going through the probate process. Administering your estate and distributing the assets is quicker and less costly for your family members.
- Irrevocable trust: Assets in an irrevocable trust can’t be removed after they’re placed in the trust. As this type of trust is inflexible, they are typically used to protect the assets of an individual with a disability or to protect certain assets from being misused or wasted, or lower certain tax liabilities.
- Testamentary trust: A testamentary trust can be tied to a will, which will only go into effect after your death. This trust is perfect for assets for minor children.
From charitable trusts to spendthrift trusts to special needs trusts, book a free consultation with Ragab Law Firm, P.C., and we will offer you guidance and support in choosing the best and most advantageous trust for your needs.
What Assets Can I Put into a Trust?
A living trust is meant to protect your assets during your lifetime so you can enjoy them while you’re here and share them with the people you love most when you’re gone. To add to this, a trust is also meant to protect you from unnecessary taxes and the sometimes lengthy and costly probate process.
Certain assets, as they are more prone to significant tax burdens, make sense for a trust, while others would cause you more financial harm than good. These are some of the common assets we discuss, as part of the estate planning process, that should or should not be put into a trust.
- Real estate: Given real estate property is subject to significant estate taxes, you can save a lot of money by transferring your real estate property into a trust. This is especially beneficial if you own multiple properties or have properties in another state.
- Financial accounts: Only certain savings accounts make sense for a trust, including investment accounts, bonds, stocks, money markets, mutual funds, and similar funds. Accounts you pay monthly bills from, on the other hand, would not do you any justice in a trust.
- Retirement accounts: IRA’s, 401(k)s, 403(b)s, and other qualified annuities are subject to withdrawal penalties, and income taxes would be imposed if transferred to a trust.
- Medical savings accounts: As these accounts are typically tax-free and used for paying medical expenses, they cannot be added to a trust.
You might have questions about your life insurance or how to protect your vehicles after you pass. In these instances, as well as assets like your retirement or medical savings account that don’t have a place in a trust, attorneys with Ragab Law Firm, P.C. can offer some direction.
Do I Need a Will and a Trust?
Wills and trusts, among other legal documents as part of the estate planning process, serve a specific purpose. Trusts are private legal arrangements that preserve and manage your assets while you’re living and when you’re gone, while wills only go into effect after your death and offer a clear plan for how your affairs should be handled and your assets distributed.
In action, wills direct the distribution of your assets as it relates to your heirs and beneficiaries and offers other instruction for your funeral and burial. In other words, it gives your executor a plan of action for your final wishes.
As a standalone legal document, however, all wills must go through the probate legal process in order for the executor to carry out your final instruction. On the other hand, trusts are private and do not require the probate process, which can save your family from additional costs and headaches while reducing unnecessary taxes.
Trusts go into effect the moment assets are transferred to them. They afford you and your family tax benefits, clear and specific parameters for the use of your assets, and maximum protection in the event you become sick or disabled, as well as after death.
The benefits of having wills and trusts, among other legal documents within the estate planning umbrella, are clear when it comes to preserving your livelihood, life choices, and legacy.
Maximum Protection for Your Family’s Future Starts Here
A well-designed trust can protect your money, assets, business, and family. It’s a vehicle to pass on your legacy and values and maximize wealth for future generations.
Ragab Law Firm, P.C. and our team of attorneys have expertise and knowledge in estate planning, wills and trusts, and probate. As a turnkey option for all of your planning needs, we can help you navigate the intricacies of end-of-life planning with ease and remove some of the burden and weight of making some of life’s most challenging decisions.
If you seek control over your assets and who they go to, privacy from the court, less hassle and time in probate, and will benefit from tax savings as you have properties, investment accounts, and other valuable assets, you will likely benefit from a trust.
Maximum protection for your family’s future starts right here. Our focus is to create a simplified estate planning process, from start to finish, for you and your loved ones. Book a free consultation with Ragab Law Firm, P.C., and speak with a trusts lawyer today by calling 303-557-2011.