Estate Planning Lawyer
If you are in the beginning stages of estate planning, you might wonder if you should consider a trust or just settle with a basic will. A living trust is a much more complex document than a will and might make more sense for you. Here are several signs that you may benefit from creating a trust.
You Have Health Problems
If you are facing serious health problems, you have a good reason to consider establishing a living trust. You can appoint someone to make your healthcare decisions when you are no longer able to do so yourself. You can clearly state your healthcare wishes.
You Believe Someone May Challenge Your Will
If one of your beneficiaries does not agree with something in your will, he or she can contest it in court. This can drag out the process and make things more stressful for everyone involved. A living trust is more difficult to contest than a will. Therefore, if you establish a trust, you know that your wishes will be carried out and your family will receive their inheritances sooner.
You Want More Control of Asset Disbursement
An advantage of having a living trust is that it allows you to decide how your beneficiaries will receive your assets. For instance, if you have a beneficiary who is not good with managing money, you could decide to disburse the assets in smaller portions throughout his or her lifetime.
You Want Privacy
Unlike a will, a trust does not become a public record. You do not have to worry about strangers finding out information about your assets and beneficiaries. If you’re a very private person, establishing a trust may be wise.
You Have a Disabled Family Member
If you have a disabled loved one who will need financial support after you are gone, you may want to create a special needs trust. If the money is put in a trust, your loved one can still receive government benefits.
You Want to Reduce Estate Taxes
Estate taxes can take a considerable chunk out of your beneficiaries’ inheritances. This is another reason to consider creating a trust. The document can considerably reduce estate taxes.