6 Reasons Why You Need a Trust

Some people make the mistake of assuming that only the wealthy need a Trust. However, many individuals and families can benefit from having a Trust as part of their estate plan, even if they’re not considered “wealthy.” Particular family circumstances may also trigger the need for a Trust as well. Below are just a few reasons why a Trust might be an excellent addition to your estate plan.

  1.     You are planning for disability.

A Trust can be a great solution for someone who is looking for a way to provide for a disabled loved one. It can also come in handy if you become disabled yourself, and you can no longer manage your own assets or finances.

  1.     You want to provide for minor children.

You generally cannot leave large sums of money or assets to minor children. This is difficult because you often want to name your children as beneficiaries in your retirement accounts or life insurance policies. Instead of designating a minor child as a beneficiary outright, you can name a Trust as the beneficiary. That way, you have someone who has a fiduciary duty to you and the Trust to manage the funds on behalf of your children.

  1.     You want to keep your estate plan private.

When you probate a Will, everything contained in that document becomes public record. That means that anyone can take a look at your Will. However, a Trust is not public. It is a private contract between you and the people involved in the Trust. There are situations where a Trust may become public, such as when there is a dispute about the document. Nonetheless, in most circumstances, a Trust allows you to keep your estate plan private.

  1.     You have real estate in more than one state.

If you do not have a Trust and only have a Will, you will have to probate the Will in each state in which you have real property. That can be very time-consuming and expensive when you take everything into account. Instead of going through that kind of a hassle, you can form one Trust and simply place all of the real estate you own in one Trust. It is much easier to administer your real estate in these tricky situations if you use a Trust over a Will.

  1.     You need to face unique challenges after a second marriage.

If you are entering a second or later marriage, you may have unique needs when it comes to estate planning. Having a Trust will allow you to keep certain assets separate so you can pass that property to whomever you like (such as a previous spouse or children from a previous marriage, etc.). Some individuals like to have the ability to be a bit more creative with how they want to distribute their assets in later marriages.

  1.     You want to avoid probate or deal with estate taxes.

A Trust can be a great way to help you avoid probate or address potential issues with estate taxes. While you may not be able to replace your Will entirely with a Trust, you can deal with many of your assets in a Trust instead of through a Will.

If you are considering creating a Trust, Legacy Planning Law Group can help. Give our team a call today to discuss your options at 904-880-5554.

Written by Legacy Planning Law Group

Legacy Planning Law Group is dedicated to working with individuals and families to help protect the assets they have built throughout their life, and make everything simpler for families who have lost a loved one. We help thoughtful people achieve the peace of mind that comes with planning their personal legacy and passing on family harmony.