One of the most important, but frequently overlooked, financial responsibilities that all people have is properly organizing and preparing their estate for the future. When looking to plan for the future, many people consider creating a will and not pursuing any further option. While a will can have value, it would be wise to consider further estate planning as it has additional benefits on top of a will.
When you are looking to complete estate planning, one of the first things that will be done is the creation of a trust. A trust is a type of estate planning, which provides some additional benefits on top of a will. The main difference between building a trust and a will is when they will go into effect. A will does not start until after the owner of it dies. A trust, on the other had, will go into effect immediately after it is executed.
One of the main benefits of a trust is that you can use it for more complex situations. For example, if you own an investment property along with other people, it will be difficult to pass down through a standard will. If you establish a trust, you will be able to put the investment into the trust and then pass it down to your heirs.
Another advantage of a trust for estate planning is that it can have significant tax advantages. Since the assets put into the trust will be in the name of the trust, it can avoid some capital gains and estate taxes. Similar investments in a will could result in a higher rate of taxes for your heirs.
If you are looking for help with estate planning and you are located in the Austin, Texas area, it would be beneficial to call the Jackson Law Firm. The Jackson Law Firm is a leading estate planning law firm, which can assist you with any of your estate planning and future legal needs.
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