Many people know that they need an estate plan, but they might not know how to get one and make it the most efficient plan possible. Luckily, there are skilled attorneys who can help you know what you need to do to get a good estate plan that can protect your assets, protect your family and make it easier after you pass away. A trust is one of the best estate planning tools. Here are a couple reasons why a trust is such a great idea.
1. You Have More Control
Assume that you have a good deal of money that you want to pass on to your kids, but you are worried about how they will use it. For example, you want them to use it for college, housing, and responsible investments. You might even have one child in particular that you are worried about getting the money. In this case a trust would be the best option.
In a trust you can set provisions. This means that the trustee can only distribute the money if those criteria are met. For instance, you could say that the trust money has to be paid to a college directly for tuition only. You could say that one child can only get their money if they take a drug test and so forth. This allows you to make sure the money that you are giving to your family is used for what it is meant to be used for.
2. Your Family Get's Their Money Quicker
Another reason that many people choose a trust is because it is faster. Upon death, the trust is usually released to the trustee. This means that they can start following the provisions of the trust as soon as needed. This allows your family to get money
This is very important if you have minor children or a spouse that is depending on those funds for survival. You don't want them to be waiting months for the funds to become available.
3. You Can Save On Taxes
Trusts are still taxed, but generally they have better tax implications than a will does. This means that you can protect your estate from being overtaxed so that more money can go to your heirs and family. If you are worried about taxes, talk to an attorney. They might have additional ways, like gifting money or joint ownership that can protect you from taxes.
These are just a couple reasons why you should have a trust when estate planning.