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Creating a Trust
Navigating the waters of estate planning can often feel like charting unknown territory. Whether you're planting the seeds of your foundational plan for the first time or updating your existing estate planning documents, a trust attorney in Salina, KS, can be your
compass, guiding you through the process with experience and practical advice. Our attorneys help ensure your future plans are solid and well-rooted. Whether you’re creating a trust for yourself, your family, or your business, we’re here to help provide you peace of mind in your journey ahead.
With offices in Salina, Hays, Dodge City, and Garden City, our trust attorneys in Kansas are ready to get your estate planning prepared.
What is a trust?
A trust is a legal arrangement that can be thought of as a tool for managing assets, often used for estate planning. Imagine it like a treasure chest where you can safely keep your valuable assets (like money, property, or investments) and appoint someone reliable, known as the trustee, to look after it. The trustee's role is akin to a custodian, responsible for handling these assets for the benefit of others, called beneficiaries. These beneficiaries are the ones who will eventually receive the assets or benefits from the trust, according to the rules you set.
The person who creates the trust is known as the trustmaker, grantor, or settlor. When setting up a trust, the trustmaker lays out specific instructions on how the trust should operate. These instructions are like a roadmap, guiding the trustee on when and how to distribute the assets to the beneficiaries. This could be for educational expenses, healthcare, or general welfare. Under Kansas law (governed by the Kansas Uniform Trust Code, K.S.A. 58a-101 et seq.), trusts must be properly drafted and funded to be effective, and our attorneys can ensure yours complies with all requirements.
Potential Benefits a Trust - Trusts Offer Control and Flexibility
One of the key advantages of a trust is control. The trustmaker can set terms that specify exactly how and when the assets are passed on to the beneficiaries. This is particularly useful if the beneficiaries are young children or if the trustmaker wants to ensure the assets are used in a particular way.
Another important aspect is flexibility. Trusts can be tailored to the specific needs and goals of the trustmaker, whether it's to provide for a family member with special needs, manage complex assets, or ensure that all family members are taken care of after the trustmaker's passing. In essence, a trust is a versatile and strategic tool for asset management and estate planning, designed to ensure that your assets are handled and distributed according to your wishes.
The establishment of a trust offers several potential benefits. One primary advantage is the avoidance of probate court, a feature commonly associated with revocable living trusts. Additionally, certain types of trusts (like irrevocable trusts) can provide significant tax benefits for both the trustmaker and the beneficiary, though Kansas has no state estate tax (federal rules may apply for larger estates). They can also offer protection of assets from creditors, ensuring that property is safeguarded.
Moreover, trusts can be instrumental in delegating the management and investment of property. This is particularly beneficial in scenarios where the trustmaker wishes to assign someone else to handle the assets, either for their own benefit or for that of the listed beneficiaries. This aspect of trusts makes them a versatile tool for both asset protection and estate planning, providing a structured yet flexible approach to managing one’s estate.
Benefit
Description in Kansas Context
Bypasses Probate Court
Revocable living trusts avoid the time and expense of Kansas
probate for funded assets.
Minimizes Estate Taxes
Irrevocable trusts can reduce federal estate taxes; no Kansas
state tax applies.
Enhanced Control Over Assets
Set specific conditions for distributions, overriding default
intestacy rules.
Minimal Upkeep
Once funded, revocable trusts require little maintenance but
can be amended as needed.
Safeguards Loved Ones
Protects assets in adverse circumstances, like creditor claims
or incapacity.
Supports Special Needs Children
Special needs trusts preserve eligibility for government benefits
like Medicaid.
Divides Complex Assets
Handles intricate holdings (e.g., businesses or real estate)
with precision.
Ensures Family Care
Provides for all members, including spendthrift protections for
vulnerable beneficiaries.
Looking for a Trust Lawyer?
If you're considering the benefits of a trust, or if you have any questions about how a trust can fit into your estate planning, don't hesitate to reach out. Our team of experienced trust lawyers is here to guide you through every step of the process, from drafting and funding to ongoing management. Give the lawyers at Kennedy Berkley a call today, and let's start the conversation about securing your legacy with a trust.
This information is for general guidance only and is not legal advice. Laws can change, so consult an attorney for personalized recommendations.