When you think about a family trust what comes to mind? If you have created this estate planning document, you are already familiar with the benefits. Conversely, if you have yet to consider what it offers, you may be missing out on something special.
Since you want to do what is best for your family, both now and in the future, it is essential to review the benefits of a family trust. This will give you an overview of what to expect and whether or not it is the right decision when compared to other options.
Note: a family trust is not the right estate planning strategy for everyone, so you need to learn more about the finer details before you make a final decision.
In short, a trust allows you to shelter property, which can then be passed along to your family upon your death.
Now’s the time to learn more, so let’s examine a few of the details that will help you better understand this strategy:
- A family trust is known as a revocable trust. This means that you can easily transfer assets from the trust to your family when you pass on.
- You don’t have to name one grantor. This is one of the top benefits of a family trust. For instance, if you are married, both you and your spouse can be listed as grantors.
- You remain in control while you are alive. It’s hard for some people to consider a trust because they think they have to give up power while they are alive. With a family trust, this is not the case. This gives you the opportunity to retain control while you are living.
Those points should give you a better idea of what you will get with a family trust. However, there is more to learn.
- No more concerns of probate. Are you worried that your family will be faced with a lengthy and often costly probate process? If so, you need to consider a family trust as this can help avoid probate. When compared to other options, such as a will, this is by far one of the biggest benefits of a family trust.
- A high level of privacy. There are many things to think about when creating an estate plan, and privacy may be at the top of your list. With a family trust, all of your assets are handed down in a private manner. Compare this to a will, with distribution of assets becoming public record.
These are the types of things that have made family trusts so popular over the past decade. A growing number people are beginning to realize that a will is not enough for them and their family. They want to take things to the next level, and the use of a family trust is one of the best ways of doing so.
Even though you now have a better idea of the benefits of a family trust, it doesn’t mean you are ready to create this arrangement just yet. You still need to do some homework to ensure that it’s the right solution for you and your loved ones.
Some of the questions to answer during this time include:
- What have you done to this point from an estate planning perspective?
- Are you okay with the idea of paying more upfront for the creation of a family trust?
- Do you know how to move forward with the process when you are ready to do so?
By answering these questions, you will soon have a better feel for what you need to do.
If you have yet to download our report entitled “Dangers of Do-It-Yourself Wills and Living Trusts,” now is the time to do so.
It is common to believe that you don’t need professional help when creating a family trust. Unfortunately, this thought can point you in the wrong direction. You need to realize that there are many benefits of consulting with an experienced legal team.
With the right attorney on your side, you will no longer have questions regarding a family trust. And best yet, you can rely on this person to show you the way. What more could you want?
- What You Need to Know About SECURE Act 2.0 - March 30, 2023
- Show Your Love by Creating an Estate Plan - March 15, 2023
- What Happens When You Don’t Trust Your Trustee – Part II - March 7, 2023