Trusts in the financial industry have paved a road through estate planning and protection for my clients for years.
A trust, as defined by the Merriam-Webster dictionary, is a property interest held by one person for the benefit of another and identifies who will receive your assets at your death. A correctly written trust will avoid probate in the majority of cases. Probate can be a costly, timely and a public process.
Financial assets are most often best kept private and privy only to those that own or will own them at some time in the future. Trusts can be arduous to complete and fund but I can assure you that the positives, in my opinion, far outweigh the negatives in nearly every case I have seen in my career.
I don’t remember a time when a client has had a loved one pass with a trust and been unhappy with the decision the loved one had made to purchase said trust. I know what you are asking, Matthew, if Trusts are so beneficial, why doesn’t everyone have a trust?
Some avoid trusts so that they are not forced to put in writing the answers to some of the most important questions of their financial lives. Some feel as though they don’t have enough assets to consider having a trust, while others avoid hiring an attorney and spending what they consider a large fee. Still others feel that a will and transfers on death are good enough to suffice.
A trust can give value in writing to the plans for your assets that have been bouncing around in your head since the first time you asked yourself, “Where will my assets go when I die?” Knowing is only half of the battle and a financial advisor and attorney can serve as very good allies when preparing your estate or simply searching for answers to protecting your estate for your heirs.