Do you really need a trust? This is a question that many people struggle with. While there are several reasons why you could have a trust, but if you really need one is dependent on your specific situation.
It’s important to understand that not everyone needs a trust. In most cases, you need to own something of value, such as money or real estate property to actually put into the trust. Additionally, trusts aren’t magic answers to tax issues or a shield you can use for some type of unlawful activity.
However, if you have a legitimate reason to have a trust, they can be beneficial. Some of the top reasons that people have a trust created can be found here.
To Simplify Your Estate Plan
In many cases, if you have previously experienced the probate for someone else’s estate, you want to form an estate so that your own spouse or children don’t have to deal with this often difficult and time-consuming process. When created properly, trusts can help your family avoid probate and allow your legacy (insurance, businesses, investments, cars, houses, etc.) pass through to the trust and to your surviving family.
A trust is one of the best ways to reduce the stress and hassle of obtaining assets for your loved ones after you pass away.
To Help Avoid Probate and Save Money and Time
With a trust, you can often safe money as it can eliminate probate. To do this, your trust would serve as the centerpiece of your estate plan, rather than a will. The basic idea behind this is if your trust is properly created while you’re alive, then after you pass, all of your property can be transferred to your family without having to involve the probate court and without the need to “file for probate.” As a result, if you create the trust and avoid probate, you can save money that would have been spent on this. Also, your family won’t have to spend a great deal of time dealing with probate.
Keep Your Matters Private
When someone passes away and own property if they have a Last Will and Testament that names an executor, the Will has to be filed in the individual’s home county. This file is considered public and available at the probate court. If there is any fight concerning the will, then the details of the fight are also available to the public. With a trust, there is no public filing anywhere, and there is no need for probate courts to “approve” the trust arrangement.
Make Special Arrangements for Unique Situations
If you have a unique situation, such as a “special needs” child or unequal giving of legacy, trusts can create the special arrangement that may not be possible with a will.
If you have determined that you do need a trust, then it is a good idea to speak with your attorney. They can help ensure you set up a legal trust that will provide all of the benefits mentioned here.