“Trusts” Used to Protect Assets for Centuries
Trusts have been used for centuries to control, protect and preserve assets. Trusts can be irrevocable or revocable.
An irrevocable trust is unchangeable. Irrevocable trusts are often used to accomplish charitable objectives and create a steady future stream of income and an income tax deduction as well. Also, irrevocable trusts are often used to own life insurance so the proceeds from a policy are not exposed unnecessarily to the federal estate tax.
Revocable trusts are changeable and are often used as a substitute for a will to minimize the cost and delay of probate. In South Carolina, if the value of a persons “probate assets” are less than $10,000, then the probate proceeding can be “summary” in nature. There are many asset classes that are not “probate assets” such as any assets owned by the trustee of a trust. That is why people often create revocable trusts to avoid probate limbo.
Trusts can be used to control your legacy and protect it for your children and their children. What kind of protection? Well for example: protection from federal estate taxes, protection from loss to divorced spouses, protection from loss to frivolous legal claims. The benefits of leaving assets in trust for loved ones are many. That is why trusts have been used for centuries.
Mark F. Winn
Attorney at Law, PLLC