All adults should have an estate plan in place so their loved ones know their wishes. The estate plan’s cornerstone is the will, but some individuals may opt to set up a trust to facilitate easier asset transfers to their beneficiaries.
A trust is a legal tool that allows the creator to set terms for how and when assets are distributed. They are categorized as either revocable or irrevocable. A revocable trust can be changed as you see fit. An irrevocable trust can’t be changed at all unless the beneficiaries or the court agree. You can keep control of a revocable trust while you’re living, but control over the irrevocable trust must be handed over to a trustee.
Ease of transfer
When you establish and fund a trust to hand down assets, your loved ones don’t have to go through the probate process to get those assets. This means that the terms of the trust don’t have to become part of a public court record, which gives the beneficiaries privacy. Additionally, bypassing probate means that they will likely receive the assets faster and with less cost than what would occur if they had to go through probate.
Other estate plan components are necessary
A trust by itself isn’t a comprehensive estate plan. Getting your estate plan together is a way to let your loved ones know your wishes. It covers everything from who will care for your affairs if you become incapacitated to what will happen when you pass away. Working with someone who’s familiar with estate planning may make it easier to ensure your wishes are conveyed in an enforceable manner.