tRUST

When is it necessary to have a trust?

A common misconception is that trusts are only necessary for people with huge estates to avoid taxes. In fact, trusts can be used to protect in a wide variety of circumstances. The most well-known benefit of a trust is avoiding probate and is recommended for anyone who owns real estate, regardless of the value of the home or if there is a mortgage.

Here are other circumstances when a trust should be created:

  • Beneficiaries who are disabled or have addiction issues

  • Beneficiaries who are minors

  • Beneficiaries who are not experienced or mature enough to receive their inheritance immediately

  • Beneficiaries receiving government aid or assistance, or have significant debts

  • Blended families with children

  • Real Estate ownership in multiple states

  • Beneficiaries who are under the influence of 3rd parties who might manipulate or take your beneficiaries’ inheritance

WILL AND LAST TESTAMENT

DOES HAVE A WILL AVOID PROBATE?

Many people believe if they have a will they won’t have to go through probate later. In fact, a will is a document that initiates probate by getting filed with the court and appointing an executor. A well drafted will can get you through probate easier (informal and unsupervised), but it still needs to go through probate unless the estate meets some very limited criteria (less than 82K in assets, no real estate, etc). All assets held in Joint ownership with Right of Survivorship, designated with Pay-on-Death/Transfer-on-Death Beneficiary, and titled beneficiary deeds will take priority before a will.

A will is better than having no documentation in place, but it is imperative that you understand what a will can do and where it falls short to achieve your objectives. This is particularly important with blended families, 2nd/3rd marriages, and families with minors, step children, and disabilities beneficiaries.

Please watch this video for more information about wills, beneficiary designations, joint ownership and trusts.

Still unsure? Get your will reviewed at no charge. Inquire before you hire.

WILL AND LAST TESTAMENT

Still requires probate, but better than nothing…