Trusts: How They Can Protect Your Assets and Avoid Probate

Thinking about the future and what will happen to your assets after you pass can feel overwhelming. Many people worry about whether their loved ones will be taken care of or whether their estate will get tied up in lengthy legal proceedings. These concerns are completely normal, and it’s understandable to feel uncertain about how to protect what you’ve worked hard to build.

At Lampert Law Office, LLC, clients throughout southwest Missouri, including Springfield, Greene County, Christian County, Joplin, Branson, Carthage, Neosho, Monett, Ozark, Republic, Lamar, and Ridgedale, receive personalized guidance in creating trusts tailored to their unique needs. 

Attorney Raymond B. Lampert works closely with individuals and families to structure trusts that protect assets, minimize delays, and avoid probate whenever possible.

If you’re considering a trust for your estate, it’s important to understand how it works and how it fits into your overall estate planning strategy. Contact Lampert Law Office, LLC today to explore your options with a knowledgeable and experienced attorney.

What Is a Trust?

A trust is a legal arrangement in which one person, known as the grantor, transfers assets to another party, called the trustee, to manage on behalf of beneficiaries. Trusts can serve multiple purposes, from protecting assets to simplifying estate administration.

There are several types of trusts, and the right one depends on your goals. Trusts are often used to control how assets are distributed, protect beneficiaries who may not be able to manage large sums, and reduce delays that can come with probate court. 

Trusts are a key component of estate planning, helping families plan for the future with clarity and protection.

Benefits of Using a Trust

Setting up a trust can offer several advantages over relying solely on a will. While a will is an important estate planning tool, it usually goes through probate, which can be time-consuming and public. Trusts provide more control and privacy.

Key benefits of establishing a trust include:

• Avoiding probate: Assets in a trust generally bypass probate court, allowing for faster distribution.

• Protecting privacy: Unlike wills, trusts typically don’t become part of the public record.

• Managing assets for beneficiaries: Trustees can manage assets for minors or individuals who may not be financially savvy.

• Reducing estate taxes: Certain types of trusts can help minimize estate tax liability.

• Protecting assets from creditors: In some cases, trusts can offer a layer of protection from lawsuits or creditors.

While trusts offer many advantages, they also require proper planning and administration to work as intended. Integrating trusts into a comprehensive estate planning approach helps families maximize protections and control.

Types of Trusts

There are many different types of trusts, each serving specific purposes. Selecting the right one depends on your financial situation, family needs, and estate planning goals.

Common types of trusts include:

• Revocable living trust: Allows the grantor to make changes or revoke the trust during their lifetime.

• Irrevocable trust: Can't be changed once established, often used for asset protection or tax planning.

• Testamentary trust: Created through a will and takes effect after death.

• Special needs trust: Designed to provide for a beneficiary with disabilities without affecting government benefits.

• Charitable trust: Provides assets to a charity while potentially offering tax benefits.

• Spendthrift trust: Protects assets from beneficiaries’ creditors or poor financial decisions.

Choosing the right type of trust requires careful consideration of both current and future circumstances. Working with a lawyer can help integrate trusts into an overall estate planning strategy.

How Trusts Help Avoid Probate

One of the main reasons people set up trusts is to avoid probate, the legal process through which a court validates a will and oversees asset distribution. Probate can take months or even years and may involve court fees and public scrutiny.

Assets placed in a trust generally don’t go through probate. Instead, the trustee can distribute them directly to beneficiaries according to the terms of the trust. This allows families to access funds more quickly and with fewer legal hurdles.

Advantages of avoiding probate include:

• Faster distribution: Beneficiaries receive assets sooner than waiting for probate to conclude.

• Lower costs: Probate fees and court expenses can be avoided.

• Privacy: Trusts are private documents, unlike probate records, which are public.

• Reduced family stress: Avoiding court proceedings can lessen conflicts among heirs.

Using a trust doesn’t eliminate all responsibilities, but it can make the process smoother and less stressful for loved ones, making it a vital part of any estate planning plan.

How Trusts Protect Assets

Trusts aren’t just about avoiding probate—they also offer a way to protect assets for future generations. By placing property in a trust, the grantor can control how and when assets are used.

Ways trusts protect assets include:

• Shielding from creditors: Certain trusts can protect property from lawsuits or creditors.

• Controlling distributions: Trustees can distribute assets according to conditions set by the grantor.

• Supporting minors or dependents: Trusts can manage assets for children until they reach a certain age or milestone.

• Preserving family wealth: Trusts can help keep assets within the family and prevent misuse.

• Planning for incapacity: Trusts can manage assets if the grantor becomes incapacitated.

Trusts are flexible tools that let families plan ahead and protect what matters most, which is why including trusts in estate planning is highly recommended.

Funding a Trust

Creating a trust is only the first step; funding it properly is essential. Funding a trust means transferring ownership of assets from the individual to the trust so that the trustee can manage them.

Assets commonly placed in trusts include:

• Real estate: Homes, vacation properties, or investment properties.

• Bank accounts: Savings, checking, or money market accounts.

• Investment accounts: Stocks, bonds, and mutual funds.

• Business interests: Shares or ownership in a family business.

• Valuable personal property: Art, jewelry, or collectibles.

Without proper funding, a trust may not serve its intended purpose, and some assets might still go through probate. Funding a trust properly is a critical step in effective estate planning.

Choosing a Trustee

Selecting the right trustee is a critical decision. The trustee manages trust assets, follows the instructions set forth by the grantor, and distributes assets to beneficiaries.

Factors to consider when choosing a trustee include:

• Trustworthiness: The trustee should act in the best interest of the beneficiaries.

• Financial knowledge: Managing investments and accounts may require financial skills.

• Availability: Trustees should have the time and resources to manage the trust.

• Impartiality: Trustees should make fair decisions and avoid favoritism among beneficiaries.

• Professional options: Some people hire a corporate trustee or attorney to manage the trust.

A well-chosen trustee can make a significant difference in how smoothly a trust operates and how well it supports your broader estate planning objectives.

Common Mistakes to Avoid With Trusts

Even with careful planning, mistakes can undermine a trust’s effectiveness. Being aware of potential pitfalls can help individuals avoid common errors.

Mistakes people often make include:

• Failing to fund the trust: Assets not transferred won’t be protected.

• Choosing the wrong trustee: An unqualified or biased trustee can cause problems.

• Overlooking tax implications: Some trusts have tax consequences if not structured properly.

• Not updating the trust: Life changes like marriage, divorce, or births require updates.

• Ignoring legal requirements: Trusts must comply with state law to be valid.

Addressing these issues early can save time, money, and stress later, and it helps keep your estate planning on track.

Frequently Asked Questions About Trusts

Considering setting up a trust can raise a lot of important questions. Trusts offer benefits that go beyond a traditional will, such as avoiding probate and providing greater control over how your assets are managed and distributed. Below are answers to some of the most common questions people have when exploring whether a trust is right for them.

Considering setting up a trust can raise a lot of important questions. Trusts offer benefits that go beyond a traditional will, such as avoiding probate and providing greater control over how your assets are managed and distributed. Below are answers to some of the most common questions people have when exploring whether a trust is right for them.

Do I need a trust if I already have a will?

A will is important, but a trust can provide additional protection. It can help avoid probate delays and assure a smoother transition of your assets.

Can I change a trust after it’s created?

Yes—if it’s a revocable living trust, it can be changed or even revoked entirely. However, irrevocable trusts are generally fixed and can't be modified once established.

Will a trust protect my assets from creditors?

Some trusts offer asset protection, but this depends on the type of trust and your state's laws. It’s important to consult with a lawyer to understand your specific situation.

How much does it cost to create a trust?

The cost of creating a trust depends on factors such as the type of trust, the value and number of assets involved, and attorney fees. Some trusts are straightforward and more affordable, while others require more detailed planning and may be more expensive.

Can a trust help with estate taxes?

Yes, certain types of trusts are designed to reduce estate tax liability and help preserve more wealth for your beneficiaries.

Contact an Experienced Probate Lawyer

At Lampert Law Office, LLC, clients across southwest Missouri, including Springfield, Greene County, Christian County, Joplin, Branson, Carthage, Neosho, Monett, Ozark, Republic, Lamar, and Ridgedale, work with Attorney Raymond B. Lampert to create trusts that offer peace of mind and safeguard what matters most.

Trusts can simplify asset distribution, help avoid probate, and provide families with greater control over their financial future as part of a comprehensive estate planning strategy.

If you’re ready to explore how a trust can help protect your assets and support your loved ones, contact Lampert Law Office, LLC today to discuss your estate planning goals with an experienced attorney.