Proper estate planning is very essential for a property owner to get maximum gains from the property. At the same time, a good plan can provide huge benefits to the spouses of the property owner. A number of property owners use trust in farm estate planning.
Use of trusts in farm estate property is very common. These trusts are actually provided with the right to handle a certain property for a limited time so that the property owners can be provided with benefits. In certain cases, the court of law selects a trust or forms a trust to take care of a particular property. When any farm property is provided to a trust then the ownership is divided. The trust becomes the legal owner of the property and the individuals who gets the benefits from the property are the beneficial owners.
As the legal ownership remains with the trust, all the controlling rights of the property also remains with the trusts. These properties are covered against any kind of claim made by the creditors. The creditors may be of the trustees or may be of the beneficiary, but the property cannot be handed over to them as the property neither belongs to the trust nor to the beneficiary.
Another benefit of involving a trust in farm estate planning is that the property is safe from any kind of matrimonial claims made for the property. On the other hand, the trusts add a certain amount of flexibility in the distribution of the property among the beneficiaries. At the same time, the benefits are also divided according to the situation. Involvement of trust in farm estate planning also ensures the protection of legal property rights of a handicapped beneficiary.
All these advantages have been encouraging a number of property owners to introduce trust in farm estate planning and secure the future of the property.
Last Updated on : 30th July 2013