Legal Tips & Resources
It’s never too early to start on your estate plan. If you’re stuck deciding between a will or a trust, there are a lot of benefits to both options. To make your decision easier, it is important to understand the basics of a trust. Here are four facts about trusts.
Trusts Are Private
If you know anything about wills, you may know that they have to go through probate court. Anything that goes through probate court becomes a part of public record. There are a lot of reasons that individuals choose to remain private about their estate plan. They may be worried about families arguing over the inheritance or about others targeting their loved ones for their inheritance. If you establish a trust, the trust does not go through probate and hence can remain private.
Trusts and Wills Can Work Together
Some people think that you have to choose a will or a trust. The truth is that you can have both. Many people who have an estate plan have both a will and a trust. Many people choose to use a will when they already have a trust established. Say that you established a trust but then obtain more assets before your death. You may not want to go through the trouble of adding them to a trust. Instead, you can create a pour-over will. The pour-over will can transfer additional assets to your trust.
Trusts Can Protect Assets
In some cases, you can use a trust to protect your assets from creditors. Now, not all trusts can protect your assets. A revocable trust cannot protect your assets. However, an irrevocable trust can protect assets. In this type of trust, you are not the trustee. You do not have access to the assets within the trust. This protects the assets because technically, the assets are not in your control. Any of the wealth or assets that you have control of are also accessible to creditors. If you are worried about creditors or lawsuits, then a trust may be your best option.
A good estate plan will protect your estate, assets and your loved ones’ best interests after you die. All estate plans are different. If you choose to have a trust, then it has to be customized to fit your circumstances. To find out what trust options work best for you, set up a consultation with a trust lawyer, such as from Citadel Law Firm, today.