Are Trusts Only for the Rich?

The process of estate planning should involve a significant amount of research. You don t want to limit yourself and make less than ideal decisions based on a lack of information. There are misconceptions out there, and you can make mistakes if you buy into them. One of them is the notion that trusts are only for the rich. Different Types of Trusts There are certain types of trusts that are used exclusively by wealthy people. In many instances these trusts provide estate tax efficiency. There is a federal estate tax in the United States, as well as a New York State estate tax. In 2014 the federal estate tax carries a $5.34 million credit or exclusion. In New York the estate tax exemption is $1 million.  If you are arranging for the transfer of more than this amount to your heirs, you must take steps to mitigate your exposure. Certain types of irrevocable trusts are used in the field of estate planning to provide estate tax efficiency. Trusts that are irrevocable can also be useful fo
http://www.davidovlaw.com/trusts-rich/?utm_source=rss&utm_medium=rss&utm_campaign=trusts-rich