To Trust or Not to Trust - Ask Vinny

Dear Trust,

This is a great question and one that I would have with your attorney and your accountant to determine if a trust is suitable for your financial situation. Putting your land in a trust can provide substantial benefits. It may protect your family from estate taxes, creditors, divorce, and lawsuits and defines your wishes for how you want that land to be taken care of and by whom. People often use trusts to safeguard their money and minimize their tax burden. While anyone can create a trust, many people are unaware of the advantages they offer. As a result, they miss out on financial benefits and asset protection. Also, because you've transferred assets out of your estate, there may be transfer tax benefits associated with an irrevocable trust. But remember that contributions to a trust are generally subject to gift tax requirements during your lifetime. Talking with your accountant can help you plan for future benefits or any disadvantages you should be aware of.