Crafting a well-rounded estate plan is vital for many reasons. It can help to ensure that your assets are distributed per your wishes and allow you to control your finances and healthcare if you become medically incapacitated.
For many, estate planning goes beyond the creation of a simple will. While a will is crucial, it may not offer the flexibility and control needed for complex situations.
Trusts, legal entities that hold assets for beneficiaries, provide a more dynamic approach. Like most, you might think one trust is sufficient, but more than one could offer significant advantages in some scenarios. Ultimately, incorporating multiple trusts into your estate plan could be a strategic move.
You may have complex assets to protect and distribute
A single trust may not suffice for intricate assets, such as intellectual property. Trusts, on the other hand, allow you to tailor provisions for each of your asset’s specific concerns. Trusts can be tailored to uniquely accommodate many different complicated assets, including:
- Copyrights
- Business shares
- Mineral rights
- Stock in private companies
- Real estate across jurisdictions
A simple will may not provide sufficient detail and flexibility to safeguard unique assets like these.
You may have beneficiaries with special needs
A special needs trust can be a lifeline for families with loved ones who require ongoing support due to a disability or chronic illness. When meticulously crafted, they can enhance a beneficiary’s quality of life without disqualifying them from government programs like Medicaid.
These are just a few scenarios wherein multiple trusts may prove beneficial. Seeking legal guidance may help to ensure that your plan always meets your needs.