When it comes to estate planning, your chief concern should be developing a comprehensive strategy that will protect your assets, maximize the value of your property, limit tax burden as much as possible, and ensure a sense of security and stability for your surviving family members after you are gone.

Trusts have emerged as an increasingly popular estate planning tool in recent years. These special instruments or accounts offer a simple way to transfer assets or property to surviving family members or loved ones while minimizing tax liability and decreasing the chance that your estate will be held up in probate proceedings for months or even years at a time.

There are several different types of trust that can be used to transfer property to your surviving loved ones. Depending on the size and complexity of your estate, you may want to establish a single trust or multiple trusts of different types. A qualified estate planning attorney can explain the different types of trusts and walk you through several different options.

One particular type of trust that has gained prominence as a savvy estate planning tool is known as a pot trust. Sometimes referred to as a family pot trust, this type of trust is usually used as a means of transferring property to minor children.

Here are a few considerations to help you decide if a pot trust should be part of your estate planning strategy.

• A pot trust allows you to set up a single trust for multiple beneficiaries.
• A pot trust grants the trustee a great deal of flexibility in making spending decisions.
• A pot trust is usually dissolved when the youngest minor in the trust reaches the age of majority.

Is a pot trust right for you? Talk to a qualified estate planning attorney to see if this type of arrangement will benefit your family.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

Tags: minor children, trusts

Leave a Reply