What Benefits Do Trusts Provide?

There are multiple different types of trusts used in the field of estate planning, and they do not all accomplish the same objectives. Let s look at some of the benefits that you can gain if you utilize the right type of trust. Asset Protection Asset protection is a concern for many people. You may be concerned about your own personal resources while you are alive, and you may also want to protect assets that you are leaving to loved ones. There are trusts that can be used for asset protection purposes. Estate Tax Efficiency When you are planning your estate, you should inventory your resources to evaluate your estate tax exposure. This tax can take a heavy toll on your financial legacy, because it carries a 40 percent maximum rate. You can transfer unlimited assets to your spouse free of taxation, but transfers to others are potentially taxable. In 2015, there is a $5.43 million federal estate tax exclusion. This is the amount that you can transfer before the estate tax would become


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