Transferring property or assets from one person to another can create complex legal issues. Transfers that occur through a will must flow through the probate court, while simply gifting assets to another may expose the receiver to harsh taxation.
The easiest way to avoid these common complications is to create a trust. Trusts can be a useful solution to estate complications, allowing you to have more control over your transfers and even providing potential tax benefits.
A Junction City trusts lawyer may be able to help you to incorporate trusts into your estate plan by explaining how these instruments operate, how they interact with probate, and how the law mandates that they come into being. Speak to an experienced attorney to discuss your options for creating a trust.
A person creates a trust for the purpose of transferring property or assets to another. According to Kansas Statutes § 58a-401, this can be done in one of three ways. The most common is to transfer property to the care of a trustee with explicit instructions that the trustee give the property to the beneficiary at the appointed time. A trust may also come into existence by a trustee declaring that they hold the property in trust, or through the exercise of a power of appointment to a trustee.
In most situations, this transfer occurs outside of the authority of the courts. As long as the transfers occur at the designated times, all parties should have no cause to complain. However, the probate court may become involved if a party raises allegations of trustee malfeasance or if there are allegations that a trust was the product of duress or undue influence. A well-versed attorney could provide more insight into the legal intricacies of trusts in Junction City.
Proper estate planning requires parties to evaluate their options and understand the impact that they will have on their futures. It is important to understand how trusts function and their impact on a person’s finances and legal rights.
A unique aspect of trusts is that they can exist outside of the court system. When property moves through a will, the probate court will oversee the entire process, which can waste time and money. By contrast, property can move through a trust with minimal court interference. This is true even if a trust only calls for the movement of property to beneficiaries upon the trust maker’s death.
Placing property into a trust can result in immediate benefits to the owner. Once property sits in a trust, the original owner no longer needs to pay taxes on that property. This can be especially helpful for high-value items, such as real estate. This transfer of ownership could even lessen an individual’s overall level of assets to help make them eligible for government benefit programs such as Medicaid. An experienced Junction City trusts attorney could be able to provide more information about the utility of trusts.
Incorporating trusts into your estate plan, although useful, can be a confusing process. A Junction City trusts lawyer could help you to better understand how these documents function and craft trusts that fit your specific needs. Reach out today to see how a dedicated trusts attorney can assist you.