Families are looking to avoid or reduce inheritance tax. We are looking at trust to protect the assest. Here are some pluses and minuses

 Whether it's better to put property or assets into a trust depends on your specific financial and estate planning goals. Trusts can offer several benefits, but the decision should be based on individual circumstances. Here are some key considerations:

Advantages of Putting Property or Assets in a Trust:

1. Asset Protection: Certain types of trusts, like irrevocable trusts, can provide protection from creditors and lawsuits. This can be valuable if you have concerns about potential legal liabilities.

2. Probate Avoidance: Placing assets in a trust can help your heirs avoid the probate process, which can be time-consuming and costly. This can speed up the distribution of assets after your passing.

3. Privacy: Trusts are typically private documents, unlike wills, which are generally part of the public record when probated. This means that the details of your estate and who inherits what can remain confidential.

4. Tax Efficiency: Some trusts, such as irrevocable life insurance trusts and charitable remainder trusts, can be used to minimize estate taxes and income taxes.

5. Control: Trusts allow you to specify how and when your assets are distributed. This can be especially useful if you have concerns about how beneficiaries might manage their inheritances.

Considerations When Putting Assets in a Trust:

1. Complexity: Trusts can be complex to set up and manage. You may need legal and financial advice to create and administer them effectively.

2. Cost: Establishing and maintaining a trust can involve legal and administrative costs, which can vary depending on the type and complexity of the trust.

3. Irrevocability: Some trusts, like irrevocable trusts, cannot be easily changed or revoked. Make sure you are comfortable with the terms before establishing such trusts.

4. Estate Size: The benefits of trusts may be more pronounced for individuals with larger estates. For smaller estates, simpler estate planning strategies may suffice.

5. State Laws: Estate and trust laws can vary from one jurisdiction to another. It's important to consult with legal professionals who understand the laws in your area.

Ultimately, the decision to put property or assets into a trust should be made in consultation with legal and financial professionals who can assess your specific needs and goals. Trusts can be powerful tools for asset protection and estate planning, but they should be used as part of a comprehensive strategy tailored to your unique circumstances.