Estate Planning Isn’t Just For The Elderly

Happy, smiling couple in their sixties.

The role of trusts in comprehensive estate planning

On Behalf of | Jun 22, 2023 | Estate Planning, Wills & Trusts

Estate planning is an important step in securing a comfortable future for loved ones. An essential tool in this process is the use of trusts, which can provide significant advantages.

In this article, we will explore the importance of including trusts in an estate plan.

Why consider trusts for estate planning?

Trusts serve a variety of purposes in estate planning. They offer control over asset distribution, providing a means to set specific rules about who receives what, when and under which conditions.

What are the benefits of including trusts?

Trusts can help reduce estate taxes. High-net-worth individuals may find this particularly advantageous. Furthermore, trusts allow privacy, as they typically do not go through probate, a public process. Trusts also offer protection against creditors and can provide for family members who might need help managing assets.

What are the different types of trusts?

There are various types of trusts to consider based on individual needs. A revocable trust allows for changes during the lifetime of the trust maker. An irrevocable trust, on the other hand, usually does not permit changes after its creation. Trusts can also provide for specific needs, such as special needs trusts designed to care for a disabled family member.

How can trusts be useful for minor children?

Parents with minor children often include trusts in their estate plans. This tool allows parents to set aside assets for their children’s care and future needs. They can stipulate that children receive the assets at a certain age or for a particular purpose, such as paying for a college education.

How can trusts provide for long-term care?

Trusts can also serve as a vehicle for managing long-term care. For example, an elder may use a trust to set aside funds for their care needs, ensuring the money goes where intended.

Including trusts in an estate plan can provide significant benefits. They offer flexibility, protection and peace of mind that assets will go to the intended beneficiaries under the stipulated conditions. Trusts can serve a variety of needs and are a vital tool in comprehensive estate planning.