Private Trusts and Wills: Safeguarding Assets

It is in this context that private trusts and wills are seen to be two of the most basic building blocks in this complex world of estate planning for the management and distribution of one's assets. These legal tools not only protect an individual's desires beyond death but also give the creator several benefits, ranging from tax benefits to matters of privacy and protection of assets.

 

 

 

What is a Will?
A will is a legal, primary document that explains how a given person wants his or her assets to be dispersed upon his or her death.

 
Key Elements of a Will:
Appointment of an Executor: An executor is the personal representative who, in responsibility, should administer the estate, settle all the debts payable, and then distribute the remaining assets to the beneficiaries mentioned in the will.

 
Beneficiaries: Beneficiaries are the person or entity that receives the incoming assets from the estate. Beneficiaries can surely be family, friends, or charitable bodies.

 
Guardianship: A will enables one with minor children to appoint guardians to be in charge of the children in the event of his untimely death.

 

What is a Private Trust?
A private trust is the agreement by which an entity, called a trustee, holds and manages property for another, the beneficiary. Trusts may be created during a person's lifetime, known as an intervivos trust, or at death, as part of a will through a testamentary trust.

Key Types of Trusts:
Revocable Trust: A trust, also known as a living trust, that may be changed or revoked by the settlor at any time during his or her lifetime.

 
Irrevocable Trust: A trust that is created but cannot be changed or revoked by the settlor; offers more asset protection and more tax benefits.

 
Testamentary Trust: A trust created by will that comes into existence after the settlor's death and is subject to probate.

 

Private trusts and wills are perhaps the two most important tools used in estate planning, with the former offering some very different and valuable benefits in both the administration and distribution of assets.