While many people use a will as the foundation for their estate plan, you may want to explore more options. For many, a trust is an essential way to achieve their estate planning goals. What unique goals can a trust help you achieve?
Trusts can preserve your privacy.
If you particularly value your privacy, a trust may allow you to maintain that privacy for your estate. Because trusts do not go through the probate process, the assets that you place in trust and how they are distributed will not be part of public record.
Trusts can minimize the impact of taxes after you pass away.
Probate costs and estate taxes can significantly impact the amount that your loved ones receive from your estate. Especially if your estate includes valuable assets like real estate or a family business, you may want to consider a trust to help minimize the impact that taxes have on your loved ones.
Trusts protect eligibility for loved ones receiving disability benefits.
Because disability benefits are based on strict income and asset limits, receiving an inheritance could limit your loved ones’ ability to receive those benefits. However, because placing property in trust means that the trust owns those assets, a carefully-planned trust can offer them additional financial support while protecting their benefits.
Trusts can protect real estate holdings.
Whether you own your family home or have a large portfolio containing a variety of different properties, setting up a trust can help avoid conflict about these valuable pieces of property.
Depending on your estate planning goals, a trust may be the best way to support your loved ones and protect your legacy.