We at B&J Bookkeeping & Taxes can perform all sorts of services for businesses and families from tax preparation to payroll to setting up a corporation. One question we get asked on occasion is the pro’s and con’s of trusts and if we can do it. Below we will discuss if a bookkeeper can set up a trust.
Can a Bookkeeper Set up a Trust?
In short, yes we can set up a trust. However, not all bookkeepers can set up any or all types of trusts. We recommend you ask your bookkeeper whether or not they can set up trusts in their state. In addition, we also recommend you ask what sorts of trusts they can set up and if they know the benefits and downfalls of each.
Did You Know? Approximately 60% of Americans believe it is “very or somewhat important” to have a will or living trust in 2021? Source: Caring.com
What is a Trust?
Most trusts are often used in place of wills to decide who gets the assets of someone after they die. They are especially useful for those who believe there could be a chance of dispute of the assets after their death. A will means the beneficiaries have to go to probate court to distribute the assets. In short, wills are great for those with few assets and few beneficiaries to dispute these assets. But we have seen families argue over “unseen” assets such as homes, property, business holdings, settlements, and any other assets that can be put into dispute.
What are the Types of Trust?
The two main types of trusts you want to look into are:
- Living trusts, also known as a revocable trust – This trust can be modified whenever you decide. For example, if you get another grandchild and want to include them, you may modify this trust.
- Irrevocable trust – As the name implies, this trust cannot be modified whenever you decide. You will need a court decision where all beneficiaries agree on the change. However, there are benefits to this type of trust, including certain tax benefits.
The main reason cited for not having a living trust or will was “I haven’t gotten around to it” followed by not having enough assets, too expensive to set up, and then not knowing how to go about it.
How Can a Bookkeeper Help With a Trust?
While some websites allow you to create a trust online, only a qualified professional can ensure it is done correctly. For example, we can help you choose what assets you can and should add to the trust. Additionally, we set up certain rules for certain assets such as a home or business. Finally, we can create and file the appropriate legal documents to ensure your beneficiaries’ peace of mind.
More Bookkeeping and Setting Up Trusts
Not sure if a trust is right for your family or business? Contact our office or call us at 281-894-6494 if you live in the Houston or Texas area for help setting up a trust correctly.
