So many people think trusts are only for the wealth or super-wealthy. That’s not the case. There are a number of reasons why trusts are beneficial to any family. Here are 7 of them:
1. Control distribution of assets.
You wouldn’t hand over your car keys to a child who has had no proper preparation for driving, and chances are you would not want to hand over all your assets to a teenager either. But if both parents die at the same time, the children would inherit all the assets upon their 18th birthdays. A trust allows you to specify how and when you want your children to inherit.
2. Protect assets from creditors.
Placing an inheritance in a trust with asset protection provisions ensures that those assets are protected from your heir’s — or their spouse’s – creditors.
3. Protect inheritance from spendthrift heirs.
Not everyone is good with money. If your heirs fall into that category, you can use a trust to ensure the assets are not frittered away due to spendthrift behavior.
4. Protect inheritance for children of prior marriage.
You can use a trust to both provide for your current spouse and any children from a previous marriage.
5. Provide for a special needs heir.
Leaving assets outright to an heir with special needs could disqualify them from receiving important government benefits. Leaving those assets in trust with special needs planning bypasses this potential risk.
6. Avoid probate.
Assets can pass to heirs without going through probate by using a trust, saving beneficiaries the time and expense of a public probate process. Trusts can be instrumental in ensuring your assets avoid the cost and delay of probate (which can be very costly even if you own real estate in California with little equity), minimize or eliminate estate taxes, and ensure your spouse, your children and your loved ones will receive your wealth and be taken care of in the best way possible.
7. Protect privacy.
Once a will is entered into probate, it becomes public; a trust is a private document that will protect your family’s privacy.
If you want to ensure your family is protected, schedule an appointment with us to discuss your options today.