Estate planning is largely about distributing your assets upon your death. While a will is one useful instrument that can put this in motion, there are several others to choose from and include in your estate plan.
A trust may be more suitable for some of your specific requirements. Outlined below are some key reasons to consider utilizing trusts.
Trusts are multifunctional
In your will, you may leave lump sums, property and different assets to beneficiaries. They will inherit these items upon your death. However, you may want the distribution of your assets to be much more specialized.
For instance, you may have a young teenage child who is not quite ready to inherit large sums of money or have total control over a business yet. A trust allows you to distribute large sums gradually over time. You can also ensure that your child is not burdened with running a business that they have not yet been trained in. A trust can allow their involvement in the company to increase gradually over time at a pace you see fit.
Asset protection
Upon your death, your financial obligations are still likely to be there. You may have been in dispute with a creditor, who now sees an opportunity to come after your assets. Trusts can offer your heirs some protection from this, as certain types of trust are off-limits for creditors.
Similarly, a trust can protect family wealth by making the assets unattainable as part of a divorce settlement. That may also one day protect your heirs.
There are numerous aspects to estate planning but these don’t necessarily have to be complex. By having legal guidance on your side, you can ensure that your estate plan reflects your final wishes in full.