For fairly straightforward estates, a last will and testament may be sufficient for passing assets on to beneficiaries. However, some estate owners in South Carolina might want to consider a living trust, also known as a revocable trust. This estate planning vehicle has a number of advantages for people with larger estates or more complicated financial or family situations.
The American Association of Retired Persons reports that around half of adults do not have an estate plan, and some people in South Carolina may be part of that percentage. Individuals might not have a plan because they think they are too young, have too few assets or do not have family, but there are a number of reasons to create an estate plan.
When parents or grandparents in South Carolina create a trust for a child, they often wonder if they should tell them about it. Many of these children won't see the benefits of the trust for many years, but even the knowledge of the benefits may affect their behavior. The creator of the trust may have concerns that the beneficiary will lose ambition or feel entitled. Conversely, they don't want the child to be worried about their financial future.
When people in South Carolina think about planning for the future, they may wonder about the opportunities provided by instruments like trusts, which can be flexible and offer additional control. In addition to a will, many people opt to create trusts, especially if they want to pass property to minor relatives or otherwise direct a more complex distribution that may be possible in a will. After a trust has been established, people may wonder if they can make a second or additional trust.
Current federal tax laws have eliminated most of the need to use trusts to transfer assets because inheritance tax exemptions currently stand at $11,180,000. Although wealthy families in South Carolina might have few concerns about federal taxes at this point, trusts still offer significant benefits to people who want to exert control over the distribution of funds and keep wealth within a family.
Some trust beneficiaries in South Carolina may find themselves dealing with trustees who seem to be uncooperative. For example, one person who was left money in a trust by grandparents to be received at certain ages could not get any information about the trust or distributions although the distributions were supposed to be made at certain ages.
South Carolina residents can create an estate plan to ensure that their assets are managed according to their wishes after they have died. This can apply to cash, real estate and other assets such as heirlooms and art. For the hard assets, it is important that certain steps are taken to make that they are addressed properly in the estate plan.
When it comes to estate planning in South Carolina, charitable trusts can be very useful. However, it's important to understand that charitable trusts differ from other types of trusts. One of the main differences is that it is not necessary for a charitable trust to identify a beneficiary. Instead, these trusts are established for the public good.
Trusts vary greatly in their design and purpose. But all trusts do share some similarities. For example, each trust has three main roles in it: trustor, trustee and beneficiary. In today's post, we'll go over what each of these roles means.
South Carolina residents can use an estate plan to ensure that their assets are managed according to their wishes and that their beneficiaries are not overly burdened with handling the estate. The inclusion of a trust is an important part of having a complete and efficient estate plan.