There is a misconception that trusts are only useful for people with very large estates. The truth is, trusts can benefit numerous people, because they may provide more control over the estate planning process than a will alone.
If you have ever wondered whether a trust might fit well into your estate plan, consider some of the reasons to establish trusts when estate planning. By adding an extra layer of protection to your plan, you can rest easy knowing your family has the proper protection after you are gone.
Why should you consider a trust in your estate plan?
One crucial reason to consider a trust is to avoid the potential cost and time of probate administration. Assets and property included in your trust do not go through probate court, which is the process of proving a will valid, paying creditors, and finally dispersing assets to heirs. The assets within a trust are not owned by the estate holder, but by the trust itself, so they pass directly to heirs upon your death.
Another good reason to create a trust is because it would offer more control over your assets. If you want to leave an heir money but have concerns about their spending habits, trusts allow you to structure inheritances. This prevents an heir from receiving their inheritance in one lump sum. You can also obligate your heir to achieve some goal, such as graduating from college, before they receive your assets.
Trusts can even help you while you are alive. You can place money into a trust for use in the event of your disability or major illness. This is crucial in case you must pay for home care or nursing home residence, both of which can be expensive.
Established more than 95 years ago, Quinlivan & Hughes ranks among the oldest and largest law practices in Central Minnesota. The full-service law firm has growing legal teams in the areas of employment law, business law, government law, insurance defense, trust and estate planning, and general litigation. Learn more at Quinlivan.com.