There are some reasons to have a Trust that you’ve probably never considered. That’s why we’re right here to help you recognize the advantages of having one.
Two important components make up the Estate Planning process: a Last Will, and Trusts. While most people are aware of the purpose and structure of a Will, Trusts can be a little more difficult to understand. Trusts generally have a more complex legal structure when compared to Wills, and with the different types of Trusts available, it can be hard to know which (if any) are right for you. However, there are several reasons to have a Trust that you should consider before Estate Planning.
Trusts usually come into the Estate Planning for individuals with over $2,000 in property, including homeowners. They can also be a crucial instrument for parents who may also want control over how their belongings are assigned to children, for example, if there are children from previous marriages to keep in mind or if there are young children involved. With that being said, read thru the following 8 reasons you should have a Trust:
- Trusts can keep away from the probate court.
- Trusts offer more control over your assets
- Certain Trusts help reduce Estate taxes.
- The structure of Trusts can assist children with special needs.
- They are low maintenance.
- Trusts can protect your family in worst-case scenarios.
- Ensure everyone in your family is sorted with a Trust.
- Complex assets may be well divided using Trusts.
Trust Can Avoid Probate Court
One of the biggest reasons for Estate Planning is that it may save your family from lengthy complaints in probate court. Trusts help ensure your Estate avoids this process. This saves your family from the problems of court during what will already be a tough time. There are also several costs associated with the probate court, along with lawyer and court fees, that you can avoid with a radical Estate Plan.
Trusts Maintain Control Over Your Assets
A Trust allows you certain control over your Estate that Wills cannot provide. The shape of Trusts allows you to determine how and when your assets will be allocated. If you have young children, this may be a remarkable way to ensure they don’t obtain their inheritances in one lump sum. Trusts can be created with certain life milestones in mind, allowing kids to obtain funds after graduation from college or maybe after marriage.
Trusts Reduce Estate Taxes
Trusts are an excellent way to reduce, and in some instances, eliminate hefty Estate taxes. Essentially, by transferring belongings into Trusts you may reduce your overall taxable Estate. Though there are many types of Trusts to choose from, they nearly all take tax planning into account.
Trust Provides Extra Care to Children With Special Needs
If you have children with special needs or long-term medical challenges, the creation of a Trust can help provide extra protection after your death. Trusts can be set up to offer long-term financial help to your child. There also are many types of Trusts that allow you to plan otherwise for the needs of each child.
Trusts Are Low Maintenance Estate Planning
Once you take the time to create a Trust, they are relatively low maintenance. While you could want to update your Estate Plan after new life events (including the birth of an infant, or buy of a brand new asset), Trusts hardly ever need to be amended.
Trust Allows You to Plan For Worst-Case Scenarios
While no one wants to think about the worst-case situations, life can sometimes get in the way. Estate Planning is an essential step in covering yourself and your family on the occasion you were incapable to make choices close to the end of your life. Trusts can assist ensure your family is taken care of in the event you became incapacitated.
Trusts Add Family Protections
Trusts are one way to ensure your spouse and kids remain cared for after your death. Creating a Trust can ensure your spouse or children receive their rightful inheritance, regardless of if they remarry or if their family structure changes later in life.
Trust Divides Assets Fairly
As you begin Estate Planning, you could realize that some assets are tougher than others to split up among your beneficiaries. Trusts are one way to designate how complex assets will be assigned after you die. For instance, if you have a family business that needs to be split up or a vacation home that you don’t want to leave to one person, Trusts are an excellent way to do this.
As you can see, the creation of a Trust can provide much more control over the distribution of your assets, and can even provide tax benefits. That being said, there are many reasons to have a Trust that you should consider when making an Estate Plan. The best part is, we are here to help you through the process.
Are you ready to start making a Trust for your family? Learn how we can help!