Facts v Myths About Trusts
When it comes to trusts, there are numerous myths going around that can confuse people. To help clear everything up, here are some myths that we will bust away with the facts.
What Is a Trust?
A trust is a document in which someone entrusts the legal title of an asset to someone else. In a way, you may refer to trusts as “safes” as they hold the assets in safe holding for the beneficiary until they can claim the trust.
How Is a Trust Different Than a Will in Georgia?
The difference between a will and a trust in Georgia is that while a will is only active after one’s death, the trust is active from the moment of its creation. Moreover, wills are regarded more as “wishes,” whereas trusts are more “absolute.” Wills will have to go through probate to see if they follow Georgia succession law, whereas a trust won’t need the probate.
5 Common Myths about Trusts in Georgia
Trusts are surrounded by a veil of misconceptions. The following myths are most common:
1. Trusts Are for Wealthy People Only
A trust can be made by anyone who holds a property. For instance, if all you have is a home that you want your child to inherit, the trust will ensure that no one else gets that house.
2. Trusts Are for Older People
Many people say that trusts are unnecessary if you are young, but the truth is different. You can’t know when tragedy will hit you. It might be when you are 25, or it might be when you are 70. That trust will ensure your loved ones are legally covered.
3. It’s Expensive to Make a Trust
If you work with an attorney on that matter, a trust in Georgia might seem like an investment at first. However, in the long run, it will save you money. The longer you wait, the more you can lose cash. For example, trust accounts earn interest with time – so, think about how much money you’ll lose by NOT having a trust.
4. The Children Will Inherit Your Assets Anyway
If you pass away without a will or a trust, the Georgia Intestate Succession Law will be the one to decide who gets what. If you have closer relatives such as a spouse, parents, or other relatives, then your children may only receive one part of it – and it likely won’t be the part you want them to get.
5. Trusts Aren’t Necessary If You Have a Will
Trusts and wills serve two different ends. If you have a will, your assets will go through probate – and depending on the case, they can be contested. Trusts offer more control to the one granting them, so if you know exactly where you want your assets to go, a trust will be more than necessary.
How a Georgia Estate Planning Attorney Can Help You Create a Trust That Protects Your Loved Ones
Trusts in Georgia require multiple types of paperwork – and if you miss a step, your beneficiaries might not get access to the assets you entrusted them with. Thus, a Georgia estate planning attorney will know exactly what to do so that the future of your beneficiaries is secured.
Contact Jammie Taire of SmithTaire Legal: Your Trusted Legal Partner in Georgia
If you need help with creating a trust to protect your loved ones after you are gone, contact your trusted legal partner, the team at SmithTaire Legal. Schedule an appointment with us today at 678-253-8133 to discuss your situation.