Signs you need a trust for your estate plan

| Jan 24, 2019 | Uncategorized |

Every estate plan is unique. If you are thinking of how to protect and transfer your assets when you die, you may wonder how to do it in the most effective manner. The right estate plan is comprehensive, efficient and cost-effective. 

Sometimes, a trust is the perfect aspect of an estate plan. They are flexible and helpful in many situations. Here are some signs you may benefit from setting up a trust for your estate.

You want to avoid probate

There are some assets you can shield from probate without a trust. For example, you can fill out payable/transfer on death forms for bank accounts. However, if you have a lot of other assets that will go through probate, you may want to transfer them via a trust instead. This is especially a concern if you worry about the costs and privacy issues related to probate. 

Your estate is taxable

If your estate is sizable enough to have a tax liability, you may need a trust to minimize taxes. Estate taxes can be enormous. You may be able to use trust methods to avoid the estate tax.

Your child has special needs

Of course, trusts are not just useful for avoiding taxes or probate. If you have a child who cannot manage his or her assets, you may want to set up a special needs trust. This is a way to provide ongoing funds for someone with special needs. 

You want strings attached

When your assets go through probate, beneficiaries receive them immediately. If you want to have specific stipulations regarding money or assets, a trust is a way to do it. For example, you can withhold funds from an heir until he or she accomplishes certain tasks, such as going to college or getting a job. 

Whether you get a trust is up to you and what works for your estate.