It is a good idea to have a clear overall strategy when making estate planning decisions. This strategy should play a role when making decisions regarding forming a trust in Maryland or elsewhere. This strategy should consider the questions of who, what and why.
One of the first things to consider is who will be the intended beneficiaries of the trust. Many times, the intended beneficiary may not be of adult age or may lack financial responsibility. Also, it is important that the intended beneficiaries are correctly indicated in the trust document in a way that it is legally enforceable.
One must decide what assets to be included in the trust account. Sometimes the trust account will contain assets that are easy to administer. This could include cash or financial instruments. However, there are other times when the trust will include assets not so easily administered, such as real estate or equity in a business.
On the other hand, one of the most important aspects of planning a trust is to consider what the aims of creating the trust are in the first place. Some of these goals may include protecting assets, minimizing tax liabilities, providing management of investments as well as numerous other possible strategic aims. Also, these strategic goals should be considered when deciding how long a trust should remain in place.
However, it is also essential to have knowledge of applicable laws regulating the trust in Maryland or in any other state. These rules and regulations should be taken into consideration when forming one’s trust planning strategy. This will help to avoid potential unintended legal problems for intended beneficiaries.
Source: wealthmanagement.com, “Tips From The Pros: The Most Disrespected Decision in Estate Planning“, Charles A. Redd, June 27, 2014