When some people think about estate planning, they only consider wills. They may not automatically think about trusts. There are some very specific benefits that trusts provide that aren’t associated with wills.
Understanding a few points about trusts is important so you can ensure you’re setting up the ones that best suit your needs. The goals you have for the trust and specific points about the heirs can impact what type of trust you establish.
Avoid probate and maintain privacy
One of the most important benefits of trusts is that they pass down assets to your heirs without them having to go through the probate process. Avoiding the probate process helps to keep the costs under control. It also provides them with some privacy since the type and amount of their inheritance aren’t made public with a trust.
Can protect against creditor claims
If you’re concerned about creditors making claims against your estate, you need to establish irrevocable trusts. These can’t be changed without the approval of all the beneficiaries, and they remove the contents of the trusts from your control. Since you don’t have control over the contents of the trust, creditors can’t stake claim to them. Revocable trusts don’t have that same protection.
Discuss your specific goals with someone familiar with estate planning so you can learn about the options that you have. Setting up a comprehensive estate plan helps to give you peace of mind, and it protects your loved ones after you pass away. Remember to review the plan periodically so you can ensure it still reflects your wishes.