Importance of Forming a Trust Through the Best Credit Unions in Henderson
Not many people like to think about estate planning, but having a solid plan can help ease both the financial and emotional burden on your loved ones. While you may think a will is enough to wrap up your affairs, trusts are also a vital part of estate planning. Holding a trust account at the best credit unions in Henderson can help to ensure your assets are distributed and managed to your wishes. The following are two different types of trusts:
Revocable trusts are created while the grantor is still alive. You retain ownership and control of the property in the trust and can change trustees and beneficiaries, and modify or revoke the trust if you wish. Although useful to avoid probate, a revocable trust may not provide many tax-saving benefits and is still subject to claims by creditors. Typically, a revocable trust becomes an irrevocable trust upon the death of the grantor. Your attorney can give you guidance and help you with the necessary documents. Upon completion, you can open or alter your account at CCCU or any other institution to become the trust account.
An irrevocable trust cannot be altered or revoked after it's established. Once assets are transferred to an irrevocable trust, they become the legal property of the trustee to hold for the beneficiaries, and no one except the trustee can take assets out of the trust. Irrevocable trusts are particularly effective for:
Asset protection - An irrevocable trust cannot be touched by creditors. An irrevocable trust protects them because the trust is a separate entity from you. Your gifts to your heirs remain intact, even if someone sues you and wins.
Avoiding probate - Assets contained in your irrevocable trust bypass the probate process when you die, and the details of your assets do not become public record. Both revocable and irrevocable trusts can help save the executor of your will and loved ones from the hassle of dealing with probate.
Control over funds for heirs - A spendthrift trust gives a trustee full authority to make decisions as to how the trust's assets may be spent for a beneficiary. Typically, it's created for the benefit of a person who is unable to control or manage their spending. This type of trust also protects the assets in the trust from creditors. It's an effective way to pass wealth to an heir while maintaining control over how funds will be spent.
Protection for heirs with special needs - A special needs trust is designed for beneficiaries who are mentally or physically challenged. It allows the person to use the assets held in the trust for non-essential items while keeping vital government benefits such as SSDI and Medicaid intact.
A trust is a very important and complex decision to make that will affect your household and your heirs for years. Take your time and find a competent trust attorney to help you create yours. Your attorney can give you guidance and help you with the necessary documents. Upon completion, you can open or alter your account at CCCU or any other institution to become the trust account.
Contact the Best Credit Unions in Henderson
This is by no means an exhaustive list of the types of trusts that can be used for effective estate planning. As the best credit unions in Henderson, CCCU offers financial planning services that can protect and grow your wealth and give you peace of mind. To learn more, contact us at 702-939-3201 today!
Important note - We are happy to share opinions and publicly available information related to these matters and more, however Clark County Credit Union is a state regulated financial institution and is not in the business of either legal counsel or tax preparation. Contact your own attorney for guidance on forming the appropriate trust for your situation. Additionally, consult with your tax expert for information concerning how your tax liability will be affected with or without a financial trust structure.