Trust Lawyer
A trust is an estate planning document that allows you to easily transfer assets after your death. Although many people know the basics of trusts, there are still many misunderstandings about them. If you plan on establishing a trust, it is important to know the facts.
Here are some common misconceptions about trusts that you shouldn’t believe.
If I Already Have a Will, a Trust Is not Necessary
A will is definitely a useful estate planning document. However, it is important to understand that trusts and wills serve different purposes. A will has to go through probate, so your beneficiaries may have to wait a while to receive their inheritances. If you want them to receive certain assets quicker, you may want to put them in a trust.
Trusts Can Only Benefit Family Members
Trusts can certainly be set up to benefit your family members. However, they can also benefit several other things. For example, if you have a pet, you may wish to leave money in a trust to pay for your pet’s care if you should die suddenly. You may also specify a guardian for your pet and instructions for its care. Additionally, a trust can benefit businesses and charities.
Trusts Are too Expensive to Set Up
It is true that it costs more to set up a trust and it does a will. However, for many people, the extra costs are well worth it. For one thing, a trust can help your family members avoid probate court, which can be more expensive.
I Can’t Control Assets in a Trust
If you have established a revocable trust, you can have full control of your assets when you’re alive. On the other hand, if you have an irrevocable trust, you will not have control of the assets in it. However, irrevocable trusts do have their own unique benefits. They may be able to protect some assets from creditors and reduce estate taxes.
It’s Always Best to Appoint a Family Member as Trustee
People frequently appoint a family member as trustees on trusts. However, it actually is not advisable to name a relative as trustee because it can strain family dynamics. In fact, more family fights may break out, which can put more stress on everyone. It may be a wiser idea to appoint a neutral third-party, such as a law firm, as trustee, as they will remain impartial.
Trusts Are Just for the Rich
It is still frequently assumed that only very wealthy individuals set up trusts. While it is true that many rich people have trusts, those with more modest incomes can have trusts as well. In fact, people of average incomes benefit greatly from establishing trusts.
If you are thinking about setting up a trust, you should get in touch with a trust lawyer, like one from Carpenter & Lewis PLLC, to discuss your needs.
