It is not uncommon for people who have spent their lives building wealth to want to protect that wealth for future generations. This approach could help maintain a legacy that spans for decades, but in order for it to be effective, Georgia residents will want to ensure that they use the tools best suited to meet their protection goals. In some cases, a credit shelter trust may be a useful option.
Like most trusts, a credit shelter trust provides benefits to those who create and fund the trust by removing assets from the accessible estate. As a result, someone with this type of trust may see the following protective measures:
- Reducing estate taxes
- Avoiding probate
- Protecting assets from creditor claims
- Making specific asset distribution instructions legally binding
These benefits can help protect assets by reducing the likelihood of the remaining assets facing considerable reduction. After all, estate taxes can be hefty on nonexempt estates, and probate can take time and money to complete, which could also deplete assets. Of course, it is important that the trust is properly funded, that a responsible trustee is put in charge, that the terms of the trust comply with the law and that other stipulations are met.
A credit shelter trust typically only comes into play after one spouse in a marriage has passed away and the surviving spouse acquires the decedent’s assets. The details of creating these trusts can often seem complicated, but interested Georgia residents could seek professional assistance if they wish. Estate planning attorneys experienced with asset protection may prove helpful to parties hoping to shield their property.