Developing your estate plan can be quite confusing. Over the course of your life you may have heard people mention trusts, but never considered whether a trust would fit into your estate plan.
While there may be pre-conceived notions about trusts in the media and general public, trusts are not just for the super-wealthy. A trust can be part of an estate plan that helps you support your family after you pass away. Setting up a trust could also keep information about your assets and beneficiaries private after your death.
Here are some of the reasons a trust could be a valuable part of your estate plan.
More than one type of trust
A trust is not a one-size-fits-all solution. There are many types of trusts to fit particular estate planning needs, including:
- Living trusts
- Irrevocable trusts
- Family trusts
Before considering a particular trust, think about your goals for the future and your comprehensive estate plan.
How a trust can help
An estate plan helps you to establish your legacy and provide for your family after you pass away. Depending on what you decide for both your future and that of your loved ones, a trust can help to protect your assets and set guidelines for distributions to loved ones.
You expect your wishes to be carried out when it comes to distributing your assets after you die. A trust can outline firm guidelines for distributions to individual(s), establishments, foundations, and even causes that are important to you. A trust can also control how beneficiaries may use funds from the trust.
It is essential to talk to your loved ones and a trusted advisor as you consider your estate planning goals. Together you can learn about the options available and what will fit your situation.