Four Reasons to Consider Setting Up a Trust
There are many reasons to establish a trust, chief among them is to ensure that your loved ones are provided for and that your wishes are honored if something happens to you during incapacity or upon your death. Establishing a trust also allows a greater level of control regarding the way your affairs are handled after your death. Below, our estate planning lawyers will discuss four specific reasons why you should consider placing your assets in a trust.
Reason 1: A Trust Makes Administering Your Estate Easier
Establishing a trust makes the estate administration process less stressful for everyone involved. When you establish a trust, you can outline exactly how you would like your assets to be handled upon your death. This gives you a great deal of control over how your property will be distributed to your loved ones. Placing assets in a trust and dictating how they should be managed can make the estate administration process simpler for your grieving loved ones and, in many states, (including Virginia) it will avoid the Probate process.
Reason 2: A Trust Ensures Your Loved Ones Are Provided For And Protected
Another one of the most important functions of a trust is safeguarding your children financially with Legacy Planning. When you create the trust, you can dictate how your finances and assets should be distributed in order to pay for your children’s healthcare, education, and other expenses until they become adults. This Legacy Planning ensures that your assets go toward providing for and protecting your children’s futures, even when they become adults.
You can also use a trust to provide for any other dependents, such as stepchildren or nieces and nephews or other loved ones. Through the trust, you can control how your assets and finances should be distributed among these parties.
Lastly, if you are partnered but not married, you can establish a trust to ensure that your partner is provided for and protected upon your death.
Reason 3: A Trust Helps Prevent Disputes Arising Between Family Members
Establishing a trust can prevent disputes from arising among your surviving family members. By clearly outlining your wishes and how your assets should be distributed, you can ensure that your family members don’t end up fighting over them in court. Disputes can easily arise if you don’t leave clear directives for your loved ones and the No Contest Clause in the trust is always a great clause to add.
Reason 4: Trusts Avoid the Probate Process (if Properly Funded)
By establishing a trust and transferring your assets into it while you are still living, you can help your family avoid a costly and time-consuming probate process after your passing. The individual you select to manage your trust will have the authority to distribute assets according to your wishes without getting a court involved.
These are just four of the many key reasons to consider establishing a trust. Others include supporting charities, reducing the tax burden on your estate, and protecting heirs from themselves. If you have questions about establishing a trust or would like to get the process started, please set up an appointment at one of our offices throughout Williamsburg, the Peninsula, and Southside in Virginia by calling (757) 645-3176 or (866) 603-5976.