While some people strongly believe that a will is the only estate planning document they need, others have come to find that a trust has just as much to offer.
With this document, you’re able to better manage your property while you are living. Furthermore, and just as important, a trust can benefit your heirs in a number of ways.
Just the same as anything in regards to your estate plan, you need to understand the details before you do anything. For example, you must decide why a trust is right for you and your family.
From there, it’s time to answer this question: What assets do you want to move into the trust? You don’t have to add all your assets to a trust, so this is one of the more important questions to address.
At some point, you also need to focus on the pros and cons of each type of trust. For instance, you should compare the benefits of a revocable and irrevocable trust.
With a trust, you can help your heirs avoid probate and save money upon your death. Additionally, this can give you more control while you are alive.
Even though there are many benefits, you don’t want to settle on a trust until you are 100 percent sure that it’s right for you, your family, and your financial situation.
Once you decide that this is the way to go, learn more about creating a trust and moving assets around. You have the right to do this on your own, but this can bring about a variety of risks and challenges. For this reason, you may want to work with a team of qualified financial and legal professionals.
Source: FindLaw, “Trusts: An Overview,” accessed Oct. 19, 2016