2 reasons why a trust should be part of your estate plan
Most people know what a will is and how they work – but trusts are still unfamiliar to many. Yet, trusts have become an increasingly valuable tool for estate planning.
A trust, just like a will, allows you to distribute your assets to your designated beneficiaries when you die. However, a trust offers certain benefits that you would otherwise not find in a will.
Here are two reasons why you should consider adding a trust to your estate plan:
1. You have greater control over your assets
Are you concerned that your designated heirs are spendthrifts who will irresponsibly blow away their inheritance? In this case, you can use the trust instrument to specify how you would wish for them to access their inheritance.
For instance, you can stipulate that they will access specific percentages of their inheritance upon meeting certain milestones like graduating from high school or college, getting a job or getting married. In other words, gives you control over your assets long after you are gone.
2. You can skip probate and save your heirs time and money
A will may be an effective way of passing your assets down to your heirs. However, for this to happen, everything left in your will must go through probate. However, besides being a public process, probate is also a very time and resource-intensive exercise.
A trust, on the other hand, does not go through probate. Consequently, this saves time and money. Additionally, a trust preserves family privacy.
A properly created trust can give you peace of mind knowing that your assets will pass down to their beneficiaries according to your wishes.