Although the economy is still in the recovery phase, many economists believe that the nation has moved past the recent recession. Therefore, many people in Maryland and elsewhere are looking to start planning for the future. One of the important aspects of wealth management is estate planning which ensures one’s intended beneficiaries will receive one’s assets after death. A commonly used and effective legal instrument to achieve this end is a trust.
There are a variety of benefits to starting a trust in order to protect one’s assets. The trust makes sure one’s beneficiaries are taken care of. Trusts can also protect beneficiaries from estate tax liabilities in many cases. Trusts can also assist in avoiding the probate process which can be lengthy and complex, while also costing money in legal and court fees.
Trust accounts insure a minimum of $250,000 by Member FDIC banks. However, when shopping for trust accounts, one should examine the various interest rates available in order to choose the best option. Other aspects to look out for are maintenance fees, minimum deposit requirements and daily compound interest.
Additionally, in order to make sure that the trust is legally enforceable in a Maryland court of law in Maryland, the associated legal documents must be well-drafted. This means the language must take into consideration contract law and applicable estate planning rules and regulations. Additionally, since estate planning laws are subject to change one should regularly update their estate plans. Staying up-to-date on the latest changes by lawmakers will ensure one is ready to move when necessary.
Source: explorernews.com, “What Every Family Needs to Know about Estate Planning,” July 17, 2013