Trusts Demystified: 7 Reasons Your Family Should Have One
Many hear the word trust and assume it’s something only wealthy people need. While it’s true that trusts are often used by high-net-worth individuals, families with more modest means also benefit from them. Here are seven reasons why you might want to consider a trust for your family:
- Control the distribution of assets
You wouldn’t hand over your car keys to someone without proper preparation, and the same should apply to your assets. Without a trust, your children may inherit everything outright when they turn 18. A trust allows you to dictate when your kids get their inheritance and what they can spend it on.
- Protect assets from creditors and ex-spouses
By placing an inheritance in a trust, you can shield those assets from your adult children’s creditors or ex-spouses. Proper planning can prevent your hard-earned money from ending up in the wrong hands.
- Safeguard inheritance from spendthrift heirs
Not everyone is great at managing money, especially when it comes in a large lump sum. A trust can help protect your assets from being spent recklessly by heirs who might struggle with financial responsibility.
- Provide for children from a prior marriage
If you have children from a previous marriage, a trust can ensure they are provided for, along with your current spouse and children. This can help avoid potential family conflicts and ensure everyone is taken care of according to your wishes.
- Support a special needs heir
Leaving assets outright to a loved one with special needs could jeopardize their eligibility for government benefits. A trust allows you to provide for their needs without putting those benefits at risk.
- Avoid probate
With a trust, your assets can pass to your heirs without going through the probate process, saving them time, money, and stress. Probate is expensive, time-consuming, and public—none of which is necessary when you have a trust in place.
- Protect your family’s privacy
Wills entered into probate become part of the public record, potentially exposing your estate to creditors and opportunists. A trust remains private, allowing your estate to be managed discreetly between your heirs and their attorney.
We Can Help!
If you’re ready to take this important step, we’re here to help. We’ll work with you to develop a comprehensive estate plan that protects your assets, honors your wishes, and provides for all your loved ones. Start by booking a Peace of Mind Planning Session. Normally $350, mention this blog and we’ll waive the session fee! [LINK]