If you are a parent or guardian, you’ve probably started planning for your child’s future the moment they entered your life. But, have you put as much thought into their financial protection when you will no longer be around?
You may think that a detailed will is enough to ensure your child’s inheritance after you’re gone. However, a will can still leave your child fighting probate, paying estate taxes and more. The only way to fully protect your child’s future is by creating a legal trust for your financial assets.
But, what is a trust, and what does it involve? How do you know if it’s right for you?
You probably have a lot of questions about a legal trust agreement, but there are answers. Whatever your personal estate planning or legal trust needs, attorney Kevin Kenney and his team can help you find the right solution. They are always happy to answer your questions when you call them at 913-671-8008 or schedule a consultation online.
In the meantime, learn a bit more about what a legal trust is below, but remember: This information is not intended to be and should not be taken as legal advice.
What is a Legal Trust?
There are many different kinds of legal trusts in the world of estate planning. It can certainly get confusing when you’re trying to understand exactly what a legal trust is.
Simply put, a legal trust is a legal document that allows a third party (the trustee) to hold financial assets on behalf of a beneficiary or beneficiaries. While a will dictates exactly who will receive which of your assets after your death, a legal trust protects your beneficiaries from the probate process.
It may seem counterintuitive but, by placing your assets into the hands of a third-party legal trust agreement, you provide more protection for your beneficiaries than can be found in a will. A legal trust fund more securely ensures that your assets will pass quickly and easily to your beneficiaries over time, whenever it happens to go into effect.
Why You Might Need a Legal Trust for Your Estate Planning
As you plan your estate, you may be unaware of why you should set up a legal trust. Why can’t an average will suffice for protecting your child’s future?
There are a few reasons why an estate planning attorney like Kevin Kenney suggests parents and guardians create a legal trust account in Kansas City:
- To protect young or irresponsible beneficiaries: Many of us like to think our death is still decades away, but unexpected things can happen. If you were to die tomorrow with just a will, your young children may inherit funds they are incapable of or unprepared for handling responsibly. When you put your finances in a legal trust, you can trust that a third party will allocate those funds appropriately over your child’s life. In fact, when you create a legal trust account, you can extend the trustee’s responsibilities for as long as you choose, often until your child reaches the age of 40.
- To minimize estate taxes and avoid probate: While a will designates your beneficiaries and their future assets, that legal document is still subject to the lengthy probate process and the expensive estate taxes that go along with it. However, a trust can remain a private record, potentially reducing the amount lost to court fees and taxes during the probate process.
- To provide more control of your assets and estate after you are gone: When you set up a legal trust agreement, you can dictate the terms precisely — controlling when and to whom distributions may be made after you are dead. You can also set up a legal trust fund that remains accessible to you during your lifetime, designating to whom the remaining assets will pass after your death.
If you’re planning your estate as a parent or guardian, a legal trust is not something to omit. It’s an important part of any estate planning process.
Fortunately, attorney Kevin Kenney is here to help you create your legal trust agreement in Kansas City.
Create Your Legal Trust in Kansas City with Kevin Kenney
Understanding what constitutes a legal trust and whether one is necessary for your situation can be complicated. So, let attorney Kevin Kenney and his legal team help.
During his decades of work, Kevin has helped many parents create their perfect estate plan — and he can do the same for you, too. As an attorney in Kansas City, he is experienced with both Kansas and Missouri will and estate laws. Your legal trust agreement will adhere to all necessary laws and procedures, whichever side of the state line you happen to live.
Attorney Kevin Kenney can walk you through all the different kinds of legal trusts and estate planning documents he completes. That way, you both can create a thorough estate plan that addresses your every need. You can call his legal team anytime by calling 913-671-8008 or scheduling a consult online.
Don’t spend time worrying about your children’s financial future. Secure with a Kansas City legal trust agreement today.