“Do I need a trust?”

This is one of the most common estate-planning questions people ask — and for good reason. Trusts can feel mysterious, expensive, or like something “rich people do.” But the truth is that trusts are far more common today, and many families, parents, homeowners, and small business owners benefit from having one.

A trust isn’t just about transferring assets — it’s about protecting your wishes, simplifying the process for your loved ones, and preventing your money from ending up in the wrong hands.

Here’s a clear, practical breakdown of when a trust makes sense, what it can (and can’t) do, and how to decide if you need one.

What Is a Trust, Really?

A trust is a legal arrangement where you place assets (like your home, investments, business interests, or savings) under the management of a trustee. That trustee follows the instructions you lay out during your life, after your death, or both.

It’s essentially a rulebook for your money and property.

Some trusts take effect while you’re alive (living trusts). Others activate after you pass away (testamentary trusts built into a will).

Reasons You Might Need a Trust

1. You Want Your Kids to Inherit Responsibly

One of the most common reasons parents create a trust is control. Without a trust, your child typically gets full access to inherited assets at either age 18 or age 21, depending on the state.

That might work fine if your child is mature and financially wise, but many parents worry about things like:

• Impulsive spending
• Friends or partners taking advantage of them
• Risky financial decisions
• Addiction or mental-health issues
• Sudden wealth being overwhelming

A trust lets you customize distribution. For example:

• “25% at age 25, another 25% at 30, remainder at 35”
• “Funds can only be used for education, housing, medical needs, or starting a business”
• “Trustee may release money for emergencies, but not lifestyle splurges”

You’re not dictating their life, just putting protections in place so they’re stable long-term.

2. You Want to Prevent “In-Law Risk”

Many people quietly admit:

“I want my kids to be protected from marrying someone irresponsible.”

A trust can help ensure:

• An inheritance stays in your child’s name as separate property
• A spouse cannot take the assets in a divorce
• The assets don’t get controlled by an ex or in-laws
• Family money doesn’t disappear into someone else’s spending habits

This is extremely common and one of the strongest arguments for trusts today.

3. You Want to Avoid Probate (and Save Your Family Time, Money, and Stress)

Probate is the court process required when someone dies with assets in their sole name. It can take 6–18 months, and legal fees easily run into the thousands.

A living trust lets your assets transfer immediately and privately — no court process. This is one of the biggest practical benefits of a trust.

4. You Own a Home

If you own a house, a trust is often the simplest way to ensure it passes quickly and cleanly to your chosen heirs. It avoids probate and ensures clarity about what happens to your property. For families who rely on the home for stability, this matters.

5. You’re a Small Business Owner

Business ownership is one of the strongest reasons to consider a trust. A trust can:

• Maintain business continuity
• Protect ownership if heirs are young
• Prevent disputes between partners or family members
• Control who receives voting vs. non-voting interests
• Prevent forced liquidation

Without planning, a business can be thrown into chaos upon the owner’s death or incapacitation.

6. You Have a Blended Family

If you’re remarried, have stepchildren, or have children from a previous relationship, a trust can prevent conflict and ensure everyone is treated exactly how you intend.

Example concerns:

• “I want my spouse supported for life, but I want the remainder to go to my kids.”
• “I want to avoid family members fighting over what’s ‘fair.’”

A trust sets clear, enforceable directions.

7. You Have Privacy Concerns

A will becomes public record during probate. A trust stays private, which is especially pertinent if you’d rather not broadcast:

• Asset values
• Beneficiary details
• Debts
• Family disagreements

…a trust keeps everything confidential.

8. You Want to Plan for Incapacity

A trust helps manage your affairs if you become sick, disabled, or unable to make decisions. A successor trustee can step in immediately, without court involvement, to manage bills, property, or business operations. This is a huge help for families during difficult times.

9. You Want to Protect a Loved One With Special Needs

A “special needs trust” allows you to leave money to a disabled child or adult without jeopardizing their eligibility for benefits like Medicaid or SSI. This is one of the most critical uses of trusts today.

When You Probably Don’t Need a Trust

Not everyone needs one. A trust might not be necessary if:

• You rent, don’t own property, and have a simple financial situation
• You have no children or dependents
• Your estate is small and beneficiaries are responsible adults
• You’re comfortable with the probate process

A will alone may be enough for simple estates.

So… Do You Need a Trust?

You want to strongly consider one if any (or many) of the following are true:

• Own a home
• Have children under 30
• Worry about in-laws or future spouses
• Want to avoid probate costs
• Own a small business
• Are in a blended family
• Want to protect assets long-term
• Value privacy
• Want smoother medical or financial decision-making if incapacitated

A trust is not about wealth — it’s about clarity, protection, and peace of mind. You’re not just distributing assets; you’re creating a roadmap for how your life’s work should support the people you care about most.

Whether your concern is your children, your home, your business, or simply avoiding chaos for your family, a trust can be one of the most valuable tools you put in place. It’s not about control. It’s about care. And planning today can save your loved ones from confusion, conflict, and costly processes later.

The post Do You Really Need a Trust? How to Responsibly Plan Ahead appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.

There are a few different ways. One option is to seek out an angel investor. Angel investors are typically wealthy individuals who are willing to invest in early-stage businesses. They often provide capital in exchange for a share of the company’s ownership.

Another option is to seek out venture capitalists. Venture capitalists are firms that invest in high-growth businesses. They typically provide capital in exchange for a share of the company’s ownership and may also provide strategic guidance and support.

And finally, another option is to raise money through crowdfunding. Crowdfunding platforms allow individuals to invest small amounts of money in businesses. This can be a great way to raise a large amount of money from a large number of people — especially if you have a significant social presence, large network, or a product/service people really want.

How to increase your chances of getting investment funding

No matter which option you choose, there are a few things you need to do to increase your chances of getting investment funding. First, you need to have a strong business plan. Your business plan should clearly outline your business’s goals, strategies, and financial projections.

Second, you need to be able to clearly and concisely explain your business to potential investors. This means being able to articulate your business’s unique value proposition, target market, and competitive advantage.

Third, you need to be prepared to answer questions from potential investors. Investors will want to know about your business’s financials, your management team, and your plans for the future.

Finally, you need to be persistent. Don’t give up if you don’t get investment funding right away. It can take time to find the right investors for your business. Keep networking, pitching your business, and following up with potential investors.

Getting investment funding can be a great way to grow your business faster. By following the tips above, you can increase your chances of getting the funding you need to take your business to the next level.

Benefits of getting investment funding:

• Investors can provide you with the capital you need to grow your business.

If you’re a startup, you may not have the resources to grow your business on your own. That’s where investors come in. Investors can provide you with the capital you need to hire employees, expand your operations, and market your products or services.

• Investors can provide you with valuable advice and guidance.

Investors have a wealth of experience in the business world. They can provide you with valuable advice and guidance on how to grow your business. They can also help you avoid common mistakes that new entrepreneurs make.

• Investors can help you connect with other business leaders and entrepreneurs.

Investors have a network of contacts. They can help you connect with other business leaders and entrepreneurs who can help you build your business. They can also introduce you to potential customers and partners.

Some risks of investment funding:

• You may have to give up a portion of your ownership in your business.

When you seek investment funding, you usually sell a portion of your business to the investor. This means that you will no longer own 100% of your business. The amount of ownership you give up will depend on the amount of investment you receive. For some who go into business for themselves, this can be hard to swallow.

• You may have to give up control of your business.

When you have investors, they will have a say in how your business is run. They may want to have a say in things like hiring decisions, product development, and marketing. It is important to be prepared to give up some control of your business when you seek investment funding.

• You may have to answer to your investors.

As a business owner, you will be accountable to your investors. This means that you will need to keep them updated on the progress of your business and answer any questions they may have. You will also need to make sure that you are meeting their expectations.

Overall, getting investment funding can be a great way to grow your business faster. However, it’s important to weigh the risks and benefits before you decide to seek investment.

Image by Tumisu from Pixabay

The post How to get investment funding to grow your business appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.

It improves your energy bills and energy stability

One of the enormous benefits of going solar is that it can save money. The average U.S. consumer pays about $400 per year on their energy bills, which rises to $600 when they have a lot of energy-consuming appliances in their home. Going solar can help you reduce your energy bills by up to 30%, saving you up to $900 over a year.

The savings continue after the system is installed as well. Research has shown that going solar can positively impact the stability of your energy bill by reducing your reliance on the grid — and in some cases — it can even make your bills go down.

It can help you earn myriad tax breaks

Several state and federal tax avoidance premiums are available to you if you decide to install solar panels. You can get tax credits over $1000, meaning that the cost of installing the solar panels will be lower.

That said, these tax breaks are due to expire in 2024 without government intervention.

Help to reduce your carbon footprint

If you’re looking to make a short-term impact on your carbon footprint, switching to solar panels is one of the best ways. By reducing your reliance on fossil fuels and increasing your dependence on renewable resources, you’re reducing the amount of carbon dioxide in our atmosphere.

Going solar doesn’t happen overnight and it requires significant research, time and commitment, but it goes a long way towards saving you money and leaving the environment a little cleaner.

Image by andreas160578

The post Solar Tax Credits appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.

All these seem like quite good gifts. However, what about actually getting your loved one a gift that has the potential to always grow in value? And consequently, place them on a path to future financial success?
To attain such a gift, you will certainly like to take a look at offering investments as gifts. Investments always have the potential to grow in value over time, meaning that by the time the investment you provided as a gift matures, it will uplift your loved one’s financial status.

So that you pick the most suitable investment gift for your loved one and, importantly, one that will not exhaust your savings, you need to take a look at the advantages and disadvantages each investment possesses.
For an investment gift you can be confident in — that will never depreciate and will likely never be defaulted on — consider the U.S Savings Bonds. These bonds are usually by the U.S Department of Treasury. The department issues these bonds to fund the government’s activities. In return, you are guaranteed repayment of the loan with interest over a given timeframe. The advantage of this investment is that your loved one will not squander the money as they cannot access it till maturity. Moreover, they are guaranteed interest payments. However, you should know this gift is not liquid; therefore, your loved one will not be in a position to use the money in case of an emergency.

If you are aware of a company whose products you’ve loved and seen rise in value, instead of purchasing for the products from the said company, why don’t you buy the company’s shares, effectively making your loved one part of their desired company? Moreover, this investment is bound to earn them a pretty penny as well. Granted if the shares lose value, there’s a lesson to be learned there, but ideally you pick something with conservative, low-to-medium risk. This will set them on a path to sound investing.

Also, in the event the earlier two options were not quite up to your alley, you can also consider gifting them investments like mutual funds. Mutual funds will enable your loved one to earn money over a long period. This makes it one of the best investment options for younger individuals. However, this type of investment makes it quite cumbersome to award the gift to your loved ones due to the paperwork involved. This is in addition to the high purchasing costs associated with the fund. Regardless of these, once you move past the hurdle of transferring the funds, your loved one will have one of the best possible gifts managed by some of the best professionals depending on the mutual fund you select.

Though undeniably one of the best gifts you can ever offer to a loved one, always note that investment gifts are subjected to taxation. This is a minor drawback you will have to explain to your loved ones. Regardless, this festive season why don’t you give your loved one a gift that literally keeps giving?

The post Tis The Season… To Consider Investment Gifts For Your Loved Ones appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.

Typically, there are two types of municipal bonds: general obligation bonds and revenue bonds. General Obligation Bonds are issued to raise immediate capital while revenue bonds fund projects to generate income.

So what’s the catch?

While municipal bonds are tax free, they’re also paid at a fixed rate. What this means is if the market drops, then good news, you’re likely getting more gains than most. However, if the market rises, then you’re stuck in a low-yield bond.

Furthermore, individuals may invest directly, either in individual bond or municipal bond mutual fund, or through an independent account. Investments that are well run offer advantages of greater assortment in mutual funds and of professional management. Short and long-term surplus value are generated with mutual funds that are actively managed. Privatized accounts on the other hand, are also advantageous in that the possible revenue savings result from interrelating the remembrance of losses in the bond registry to counterbalance revenue gains on other expenditures. Privately managed account combines interests of professional management and direct possession of the underlying securities.

In large inherent gains in stock position, an opportunity to realize some profit is offered using a tax loss harvesting approach. This is where by a private account manager sells some bonds when the prices are debilitated hence resulting in realized gains on an equal amount of acknowledged stock. This may make the stockholder to use a registry that includes long term bond issues.

Before investing with municipal bond, one has to be aware that:

• Depending on the period you’ve held your investment with municipal bond, capital gains are taxable as either short or long-term.
• If you are a subject to the possible minimal revenue, earnings from privatized and active bonds must be reported as net earnings.
• Since investment accounts are as taxable income upon withdrawal, municipal bonds are not held in later time revenue retirement accounts.

In the memento management approach, the municipal bond prices are diplomatic to the changes in interest rates, demand and supply factors. Bond investors are usually hurt when it comes to higher interest rates, fall of the bond prices, and when there is a rise in interest rates, but they benefit when there is a fall in interest rates. Prior to due date at nominal value, most long-term municipal bonds are redeemable by commissioner. This is usually done when the bonds carry interest rates that are above the market rate that is current.

Municipal bond carry credit risk. When the economy is low, it creates vast price spreads between high and medium quality. Opportunities offered by professional managers potentially add increase on the returns via careful selection of security. A risk of default may come in when higher yields than revenue bonds are offered by municipal issues of higher yields and variable rate. This credit risk of municipal bond registry can be reduced by combing investments from several states and investing in guaranteed bonds.

The post Improving After-Tax Returns With Municipal Bonds appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.

Taxes on Capital

If you sell shares of stocks to earn money in a brokerage account, you have to pay taxes on these capital gains. The short-term tax is for any capital that you had for less than a year and are based on your tax bracket. Long-term taxes are for capital that you have had over a year that either has a 0% tax or up to a 20% tax. The longer you hold your capital, the less taxes that you will have to pay on these gains come the time for tax season.

Dividend Taxes

In almost every circumstance, dividends will always have taxes that have to be paid on them. Ordinary, or nonqualified, dividends will have taxes that are based on your bracket. Qualified dividends, however, will have less taxes, and you could pay nothing on taxes or up to 20% on them. When you came into ownership of the investment that pays dividends will have a significant effect on how much you have to pay on your taxes though. Every dividend will have its own unique set of rules according to the IRS to help you determine how much your tax payments are.

Plan for the Future

It is always important to plan for the future with the taxes that you will have to pay on your stocks. Think of the long-term and try to hold on to any capital gains for as long as possible in order to lower the amount of taxes that you owe. You should also hold any shares as long as possible so that the dividends become qualified in order to pay less. Make sure that this always meets your financial goals though in order to make the most money and reduce tax spending as much as possible.

Pay Less

You should always consider your net capital gain, which is the gains minus the losses. If you have more loss than gain, consider that a deduction when it comes time to paying your taxes. If your dividends and capital are held in a traditional IRA account, they are also tax free so be sure to take this into consideration as well. If you keep your money inside of your 401k account, you will not have to pay taxes either. This is the best solution to help you save.

Final Thoughts

Stocks are a great way to prepare for your financial future, but often, they have expensive tax costs involved with them. Make smart decisions in where to place your investments and on how long to hold on to your stock investments in order to save as much on your taxes as possible. This will ensure that you are getting the most money possible out of investing in stocks for your future.

The post Do I Have To Pay Taxes On Stocks? appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.

If you are expecting a tax refund, make sure you use it wisely so it benefits you throughout the year. In an effort to make the year easier for you financially, we are sharing how you can use your tax refund wisely.

Emergency Savings

We recommend putting half of your tax refund into an emergency savings account. You never know what could happen spur of the moment; therefore, it is best to have at least six months’ worth of living expenses put away in your savings. After starting it, you should contribute a small amount from your checks each week into the account too.

Pay Off High Interest Debt

Your credit is very important in today’s society. Therefore, the next thing you should do is pay off all of your high interest debt. Once the debt has been paid, keep it as low as possible to avoid finding yourself with a huge amount to pay again in another year.

Purchase Something You Need

If you need some car work done, go ahead and get it done. If you need basic essentials, purchase them. Your tax refund can help you with your immediate needs to; therefore, you have the potential to make more money because you have nothing hindering you from doing so.

Closing Thoughts

Before your tax refund arrives, you need to already know where the money is going. However, we never recommend spending your refund before it comes since you may be delayed in receiving it or find out that the refund amount is less than what was estimate.

Huddleston Tax CPAs blog is a Seattle CPA firm. Give us a call at (425) 483-6600 for more information about our services!

The post How to Use Your Tax Refund Wisely appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.