Trusts can be used to achieve estate planning goals with the help of Walton Financial Group
The team at the Walton Financial Group in Barrie, Ontario offers trust planning for individuals, corporations and families
A trust is traditionally used for minimizing estate taxes and can offer other benefits as part of a well-crafted estate plan. A trust is a fiduciary arrangement that allows a third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries.Trusts can be used to accomplish a number of estate planning goals that take effect during your lifetime or upon your death. While trust planning may seem overly complex, the concept of a trust is straightforward. A trust is created when you transfer ownership of your assets to a trustee, which can either be a trust company or individual, with instructions for them to use those assets for the benefit of a beneficiary.
There are two main types of trusts: a testamentary trust and a living trust. A testamentary trust is created in your will and will take effect upon your death. Assets that relate to a testamentary trust form part of your estate and are subject to any taxes or estate fees that apply. This trust can be changed at any time before your death, simply by having a new will prepared. A living trust is much different than a testamentary trust. This immediately transfers property ownership to your beneficiaries upon establishment. You are able to add more property to your trust over time, and because the transfer of ownership takes place during your lifetime, these assets do not form part of your estate.
There are several common uses for trusts. These uses include: having children from a previous marriage, your spouse lacks financial expertise, your spouse of child is disabled, you want to provide a gift to minors, tax planning, you want to provide a future gift to charity, or you want to bypass probate.
The decision on whether to set up a testamentary trust or a living trust depends on many factors, especially your need for assets during your lifetime. The experienced team at Walton Financial Group can help advise you on the best strategy for your specific trust planning and estate planning needs and goals.
For more information, please give us a call or visit our office in Barrie, Ontario. The experienced Financial Advisors at Walton Financial Group are happy to answer any questions you may have regarding trust planning and financial advisory services.
