While it is definitely true that wills are an essential aspect of all estate plans, trusts can also be quite useful depending on your financial situation. Trusts allow you more control over how your assets are treated after you are gone. This includes establishing conditions for your heirs or distributing inheritances in increments to help with financial planning.
Trusts also offer many other benefits, particularly when it comes to probate. If you are not sure whether a trust should be an element of your estate plan, this guide is a good place to start.
Trusts can safeguard your beneficiaries
There are two different types of trusts; revocable trusts allow you to make changes after they have been implemented, while irrevocable trusts cannot be changed once they have been put in place. When funds are placed into an irrevocable trust, the trust is the legal owner. Therefore, they cannot be used to pay damages as a result of litigation, including divorces.
Trusts can help you maintain your privacy
Some people do not want the details of their estate and how it was distributed known to the public. This is precisely what happens when your assets are distributed via a will, which can be accessed publicly. Conversely, trusts are kept confidential. The only people who will know the details about your trust, assets, or heirs are the people involved in the process.
Trusts can keep your family unit intact
Will contests often occur when someone in your family disputes the decisions contained in your will. Because trusts provide greater flexibility, you can be more thoughtful in how you distribute your estate. For instance, instead of cutting out a troubled family from your will, you can establish conditions within your trust so the person will have to take certain actions in order to receive their inheritance (such as attending a rehab program).