A trust is a private instrument used to hold assets for the benefit of a person or a group of people. If you were to set up a trust, it will typically benefit you during your lifetime. Then it would benefit your family, friends or favorite charity upon your passing. Trusts are usually funded with bank accounts, retirement accounts, stocks, bonds, real property or vehicles. They can even be established to benefit your family for generations.
Why should you consider a trust?
There are many benefits to having a trust. You can save time and money through probate and since assets are titled and held in trust, there is no need for them to go into an estate for probate purposes. This saves your loved ones attorney costs and filing fees.
With the ability to name a trustee, you know exactly who will be in control of your assets. Your specific directions can be used to distribute assets all at once or over a period of years. If you are interested in placing specific guidelines on the ability to receive assets, trusts are ideal.
It should also be noted that trusts are private. Unlike a will- which must be published to become effective, very few people will have a chance to view them.
Another great reason to have a trust is if you have a child. A trust allows you to specify who you would recommend as a guardian, direct how you would like your children to be educated, establish funds for college, and set distribution amounts and dates. For example, a parent might establish a trust that allows the trustee to help pay for living expenses for his or child until the child reaches the age of 25, at which time the balance of the trust could be distributed.
There are many types of trusts and reasons for why someone might want a trust. Thank you for taking the time to read this post and please don’t hesitate to contact my office to see what I can do for you.