What Is Estate Planning Trusts And Why You Should Have One?

Posted by smith clea on September 1st, 2022

A trust is a legal entity that lets you manage your assets while making sure they go to the right people and causes when you die.

You may have heard of them before, but are you familiar with their various forms?

Here’s what you need to know about trusts so that you can choose the right one for your situation and estate plan.

Dealing With A Sudden Death

No one likes to think about their death, let alone plan for it.

But if you don't have a plan in place, your loved ones will have to deal with the mess you leave behind.

It is hard enough for them to deal with a sudden death without having the added stress of worrying about how to take care of all your property and assets.

For example, who should be responsible for handling probate?

What should happen to all those assets and properties? Will, there be any money left over that can be used as an inheritance?

If not, then who do you want as beneficiaries? What would happen if there is more than one beneficiary involved?

The Easiest Way To Get Started With Estate Planning

Estate planning is the process of creating a plan to protect your assets and your loved ones in the event of your death or incapacity.

An estate planning trust is one tool that can be used to achieve this goal.

A trust is a legal entity that can hold the property for the benefit of another person, called a beneficiary.

The trustee manages the property on behalf of the beneficiary.

Think Long Term

Estate planning trusts are created to help manage your assets and property after you die.

Without trust, your loved ones may have to go through a lengthy and expensive probate process.

A trust can also help cut taxes and protect your assets from creditors.

If you have a large estate, or if you want to make sure your loved ones are taken care of after you're gone, an estate planning trust is a good option.

Know Your Spouse Or Partner's Wishes

If you don't know your spouse or partner's wishes, start by having a conversation about what they would want in the event of their death.

This can be a difficult conversation, but it's important to have so that you can make sure their wishes are carried out.

Additionally, you should look into ways to give them a voice while they're alive and competent.

Including executing an advanced healthcare directive and power of attorney documents.

Reasons To Create An Estate Plan

There are many reasons why you should create an estate plan, even if you don't think you have a lot of assets.

First, estate planning can help you protect your assets and ensure that they go to the people or causes you care about.

Second, an estate plan can help you avoid probate, which can be time-consuming and expensive.

Third, an estate plan can help you manage your health care if you become incapacitated.

Fourth, an estate plan will provide for your loved ones if something happens to you.

Fifth, without one, it is likely that a court will decide how to distribute your property - not necessarily according to what you would have wanted.

About The Author

Clea Smith is a USA-based author on Legal issues related to estate planning, will & trust, business law, and elder law. Clea Smith does her best writing on these topics that help users to find the best solutions to their FAQ on estate planning attorney, probate, living trust vs will, and more about legal family issues.