One of the most common questions people have when the topic of trusts comes up is understanding why having a trust is important. People often think, “I don’t have much money, there’s no need for it, I have xyz in place.”
The most common misconception is that a trust is the same as a will.
The reality is that a trust is a critical part of your estate plan. There are four key benefits to having a trust.
A trust can empower you to:
- Get to know what you have. Most people don’t know what they have until it’s written down. It doesn’t mean you have a ton of money. It is simpler than that. Ask yourself, do you have a car? Do you have a job? A bank account? Personal property? If you said yes to any of those things, then you need an estate plan and a trust.
- Empower someone to speak on your behalf. It empowers someone to be able to take care of your affairs and speak on your behalf when you’re not able to. When you create a trust, you are designating a specific, trusted person to take care of your property and affairs. You chose this person after careful thought about who it should be, and what you want to be done with your estate.
- Minimize unwanted third-party involvement. We’ve spent most of our lives making decisions on our own, the last thing we want is to have someone we don’t know, coming in and influencing the outcome – without our input or paying attention to our wishes. Having a trust minimizes your exposure to court and to third parties, and reduces the possibility of outside people coming in and speaking for you.
- Tailor your plan according to Your Wishes. The more creative, energy and thought you put into your estate plan, the better. Maybe you want to leave a sub-trust for your kids because you don’t want them to have everything at once, or to support their education. Perhaps one of your beneficiaries has a disability, so you want to create a special need sub-trust. The options are [somewhat] endless when it comes to creating your trust.
What will your trust look like?
- 24 Jul, 2019
- Löan Shillinger
- 0 Comments
- Estate Planning, Trust,