You may think of trusts as luxurious financial vehicles for the elite and wealthy, but the variety and versatility of trusts available offer a number of options to anyone with clear ideas about what they want their hard-earned wealth to do.
Trusts Can Allow Greater Privacy
One of the most common uses of a trust is to avoid probate, the court-supervised process of authenticating the last will and testament of the deceased. Probate can be costly, as attorney and administrative fees can quickly add up, and it can also be slow and make the process less private. A living trust can help you avoid this less-than-ideal scenario.
Trusts Can Protect the Health and Peace of Your Family
For blended families, especially those with children, trusts create clear expectations for how an estate will be distributed to family members. No matter how well siblings or stepparents get along during life, after a family member’s death, especially if money is involved, discord is highly likely. Trusts can be used to allocate fair financial support for spouses and children after death and give the family a better chance to remain united and supportive of one another during a difficult time.
Trusts Can Have Tax Benefits
Irrevocable trusts hold assets such as life insurance or assets with high growth potential and make them property of the trust itself. This can be especially useful for removing future growth of those assets from the grantor’s estate. Plus, once items move into an irrevocable trust, they are protected from any creditors who seek claims against the grantor.