There is a common misconception that including a trust in one’s estate plan is something that only benefits wealthy individuals. While it is true those with large amounts of assets stand to benefit from using a trust, so too do many other types of people.
If you already have a will in place, then you are a step ahead of most people when it comes to estate planning. You should also consider setting up a trust so that you can have greater control over the distribution of your assets, especially if you fall into any of the demographics that benefit most from this type of structure.
1. Parents
If you have young children, it might not make sense to pass all of your assets to them immediately in the event of an untimely tragedy. Regardless of the size of your estate, it may be wiser to use a trust to ensure that your children receive their inheritance only when the time is right.
2. Business owners
Without a trust in place, your business may fall apart if you suddenly pass away. You should put plans in place ahead of time to protect the livelihood of your employees and all other individuals who rely upon your company.
3. Those who wish to avoid probate
Even if you feel that you have few assets or few beneficiaries to whom you wish to pass your belongings, odds are that you still want to protect those loved ones from undergoing a burdensome probate process. A properly structured trust can facilitate a smooth transfer of assets to another individual without the need to involve the probate court.
Wills and trusts are both crucial elements of a complete estate plan. Having both in place ensures a smooth period of transition for your loved ones in mourning.
