More and more people are establishing trusts as part of their estate plans. A trust essentially keeps the assets of the trust creator in a trust to benefit the person during his or her lifetime. When the trust creator dies, the trustee will distribute the assets to the designated beneficiaries.
Here are the advantages of setting up a trust.
A Trust Can Help You Avoid Probate
Probate is the legal process in which a deceased person’s estate is distributed to appropriate beneficiaries. Sometimes the probate process can take a while to complete, which can frustrate your heirs. If you want your heirs to receive their inheritances relatively quickly, consider establishing a trust. Assets that are held in a trust don’t have to go through probate.
A Trust Can Help You Maintain Privacy
A will is a public record, so anyone will be able to see it. If you’re a private person, this might bother you. That’s another reason to create a trust. Trusts are considered private documents. Nobody will be able to search public records later on to find out information about the assets in your estate.
A Trust Is Difficult to Challenge in Court
One of the last things you want is for someone to challenge your estate plan in court. It will slow down the distribution process and cost the estate more money. If you establish a trust, it will be much more difficult to challenge in court. Since you can manage a trust throughout your lifetime, it will be difficult to prove that you were improperly influenced by a third party.
A Trust Can Save Money
A trust initially takes more money to establish than a will. It’s a more complicated legal document and an attorney may charge you more money. However, a trust may save more money in the long run. Your beneficiaries can avoid probate costs after your death.
A Trust Can Provide for Children with Special Needs
If you have a child with special needs, you want to make sure that he or she is taken care of after you’re gone. A trust can do just that. It can pay for your child’s healthcare and other needs. This will give you peace of mind.