Many District of Columbia residents choose to create a trust in order to provide for their loved ones. They take a considerable amount of time to draft the provisions of the trust in a way that will give each beneficiary as much benefit from its assets as possible. However, all of that work can be for naught if the trustee is not the right person to administer it.
In addition to providing for family after passing away, estate planning generally has two main goals -- to reduce or eliminate probate and estate taxes. Trusts are often useful in meeting these and other goals for a Washington, DC resident. The question that each resident typically needs to answer is whether a trust is necessary to meet an individual's desires.
Far too many people in Washington, DC, and around the country do not even have a will. People who shy away from estate planning often do so because they do not want to contemplate their own demise. It may be an unpleasant topic, but it is necessary.
Many Washington, DC residents decide to use a trust to keep their property from having to go through probate. Some of those people use living trusts, which are trusts that are created while the individual creating it is alive. That person can be both the beneficiary of the trust and the trustee of it as well.