Trusts might seem like the most complicated part of estate planning. Unlike a will, which can be basic enough, trusts are an estate planning mechanism that can be used to avoid probate court, minimize tax implications and, for the most part, make it easier to transfer assets and property to heirs and beneficiaries. Each estate plan is different, based on a wide variety of financial factors and family dynamics. Should trusts be a part of your estate plan?
The answer to that question will usually depend on each person’s goals for their estate plan. For those with simple estates, a will and other basic estate planning documents may be enough. However, for those who want to make sure that their loved ones have as smooth of a process accessing assets as possible, and a minimal amount of exposure to probate court, trusts could be an option.
Many types of trusts
The hard part, after considering trusts as part of your estate plan, is determining which kind of trust is right for you. There are many different kinds to consider: revocable versus irrevocable trusts; trusts that go into effect immediately as opposed to those that start after your death; charitable trusts; and land trusts for real estate, for instance. These are a few examples of what you might want to consider when it comes to trusts as part of an estate plan.
The right decision for you
If trusts are something you are considering, you’ll want to be sure you are getting the right information. To learn more, please visit the trust overview section of our website.