In our blog we will try to provide you with general information regarding family law, as well as updates in important cases and statutes dealing with family law in New Hampshire. This is not to be construed as legal advice. Every case is unique and small facts can make a difference.
Trusts in New Hampshire
A trust is a legally binding agreement that determines how property and other assets are to be distributed. There are two main types of trusts. A traditional trust is one that is created after death (as part of your will), while a living trust is created while you’re alive. A living trust is undoubtedly a popular choice. A living trust is also known as an “inter vivos” trust. A living trust is not necessary for everyone but it is helpful for most people to have one in place. It can provide loved ones with peace of mind knowing that assets are protected. Trusts are essential in making sure assets are properly dispersed and that they are not lost due to excessive taxes.
Living Trusts in New Hampshire
A living trust is a way to have control over your financial decisions. A trust can often make things easier for family members after your death. Sometimes a trust is helpful in avoiding probate, making it easier to resolve issues and move forward. Certain types of trusts are set up specifically for probate issues so it is important to discuss the matter with an experienced New Hampshire attorney before making any decisions. It is essential to work through an attorney because of the complexities of the matter – making your own trust may not have the end result you desire. In fact, a poorly executed trust can be more harmful in some cases than not having one in place at all. While there are some do-it-yourself trust kits available, these can be difficult to complete and may not offer the protection you desire.
Is a Will Still Necessary If I Have a Trust?
Yes. A trust is only one part of a will. The trust holds many of the physical assets of the estate. The will itself addresses many additional things and sets forth specific instructions on many areas including providing for a trustee for the estate. A trust along with a will helps to resolve issues and can improve the way assets are distributed as well as tax issues that inevitably arise. You most certainly want to protect your loved ones from losing a large portion of your assets to taxes. The best way around this is to have your will and trust drawn up by an experienced attorney. The lawyer knows the latest tax rules that will apply to the situation. You must also make periodic adjustments to your will and trust in order to accommodate new tax laws that have been put in place.
Trusts in New Hampshire
Trusts can be simple or complex. If you have a great deal of assets, including property, it is always necessary to consider a trust. Trusts are a good way of handling assets in the case of death. Because laws regarding inheritance and taxes can change quite often, you should be sure to have your trust reviewed from time to time by an attorney. Also, trust laws can be different from state to state so you should always consult with a New Hampshire attorney to create or make changes to your trust. For married couples a trust makes sense because it will create a method for handling assets should one partner die. Trusts can be essential in complex family situations where there are remarriages and step-children. You must be careful to properly include and protect your loved ones in the event of your death. One of the things that a trust can do is resolve tax problems and keep taxes to a minimum.
If you’re considering creating a trust one of the first things to do is to make an inventory of your assets. Assets include so much more than just your bank account. Some of the assets to consider include such things as:
An experienced New Hampshire attorney will help you list everything of importance, including some things you may not have thought about. Anything left out of the trust could become problematic for family members after your death. Therefore, it must always be updated to include changes to your finances as they occur. Additionally, if you divorce or marry you must determine how to change your trust. Often your divorce settlement will include instructions about how to handle certain finances and these must be taken into account when making a trust.
Protect Yourself with a Living Trust
A living trust can take care of how to handle assets, possessions, and investments. It can also dictate how to handle power of attorney in the event that you become unable to take care of such matters due to illness. A living trust can also inform family members and medical professionals of your wishes in case of catastrophic sickness. For example, you may want to indicate how to handle life support should you require it. In other words, the living trust is an up-to-date profile of instructions for what your wishes are in matters of health and finances. Your trust protects not only you but also your loved ones so you must take care in being thorough in making it.
How to Make a Living Trust
There are many important factors that must be considered when making a living trust. Even for those with few assets, a trust can be quite complex. Tax considerations alone can be confusing and the tax laws change frequently. For these reasons, it is best to have your trust completed by an attorney knowledgeable in trusts. Remember that a trust should always address current information. If finances change you will need to make changes to your trust. Also, if your family status changes, if you marry, divorce, or have children, these need to be addressed in your trust. Trusts that are properly maintained will be useful and will accomplish what you want after your death. There are many intricacies associated with drafting a successful trust so it is necessary to choose an attorney with expertise in trust law.
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