Many people think that when they go to do their estate planning that they should get a will instead of a trust. This is simply not the case. will is important, you should only put the guardianship of minor children in a will. Everything else, especially that pertaining to money, should go in your trust. Here are a couple things you need to know about a trust.
1. A Trust Helps You Get Your Money Faster
One reason that people choose a trust over a will is that you will get your money faster. If you pass away without a trust, and everything is in a will, it will have to go through a process called probate. This is a process that the courts must oversee meaning you are on their timetable instead of the one you created for your beneficiaries.
With a trust you name a beneficiary. This beneficiary will be able to distribute the trust, as you outlined it, upon death. This means that your family and loved ones can get everything that you intended them to have right away. If your family is depending on your estate to help pay for their living expenses after you pass away, then you should have a trust.
It should be noted that if the estate is disputed, distributing the funds could take longer. This is the case regardless if your estate is in a trust or a will.
2. A Trust Is More Private
Another disadvantage to a will is that everything in the will is put on public record. This means that anyone can look at your estate, what you chose to do with everything and how much you were worth. This may not be a concern to some, but if you want to keep your estate private and personal, you should put it in a trust.
3. A Trust Will Save You Money
A trust is very affordable to create. An estate-planning attorney will be able to show you how to distribute everything to make sure that you are protecting your money. In addition, trusts are taxed differently than a will, which means that you could save a good deal of money in estate taxes if you organize your trust correctly. This is why when you create your estate plan you should talk to both an attorney and a financial planner to make sure that you are getting the best tax break possible for your estate. Make an appointment with a local attorney, such as Price & Associates, if you have questions.
These are just a couple things you need to know about trusts.