As you go through the estate planning process, you will have questions and concerns. It is important to address each one, ensuring that you don't run into a situation that drags down you and/or your family in the future.
Here are several of the most common benefits associated with the creation of a trust:
-- Avoiding probate. When you keep property out of your probate estate, such as by creating a trust, you can help your family avoid a costly and time consuming process in the future.
-- Avoiding taxes. There are many types of trusts, with some, such as an irrevocable life insurance trust, meant to save your estate money in regards to taxes.
-- Benefit charities. Are you interested in leaving some or all of your estate to a charity or institution? If so, you can use a charitable trust to do so. Furthermore, you can also setup this type of trust to leave money to the charity while you are still living. For many, this is the best of both worlds.
With these benefits in mind, you should at least consider creating a trust. It may not be the best decision for you and your family, but it's one that you have to learn more about as soon as possible.
Maybe you decide in favor of a trust. Or maybe you realize that this is not something you need right now. It doesn't matter if you go down this path or not. What matters is that you are aware of the benefits and you consider how it can help your family.
Source: Dummies, "Benefits of Setting Up a Trust," accessed April 12, 2016