Wills are the most popular estate planning tools. It could be due to their simplistic nature or because many people are familiar with them. Trusts, on the other hand, are shrouded in mystery. There are numerous misconceptions about how they work, and it’s no wonder they are not so widespread.
Trusts have several advantages over wills that most people don’t know about. As a result, they miss out on these benefits, often at the cost of the estate and its beneficiaries. Below are some reasons you should strongly consider including a trust in your estate plans.
Trusts avoid the probate process
In most cases, a will must go through a court-controlled process known as probate during its execution. Probate can be expensive and time-consuming, and to add insult to injury, your loved ones have to wait until the end before taking over their portion of your estate. Trusts do not go through probate, which can save your loved ones time and money.
Trusts provide more control over your assets
A trust allows you to determine how the assets held in it will be handled and distributed even in the years ahead, something impossible with a will. For instance, you can create a trust for a specific purpose like your children’s education or providing for a loved one with special needs.
You can protect your family wealth with a trust
Assets under a trust are not legally owned by the beneficiaries, unlike in a will. Therefore, a creditor cannot repossess these assets to recover a debt owed by a beneficiary. In addition, trust assets are also not divided in a divorce.
You do not have to make a difficult choice
You can enjoy the best of both worlds by having a trust and a will in your estate plans. All you have to do is decide what goes where and ensure you get everything done right.
Learning more about how trusts work can help you make the right call if you are unsure of how to handle everything. Experienced legal guidance is essential.