7 Reasons To Consider A Trust For Your Family

Do you consider trusts to be instruments of the wealthy? Do you think creating a last will and testament will be sufficient for distributing your assets? While it is true that many Americans of means have trusts to protect and pass their wealth, there are a number of reasons why trusts can also be useful for middle-class families, more than just a will. 

There are many advantages to a trust, including the fact it goes into effect the moment you sign the trust document. You can also stay in control of the trust until you are unable to do so, and with a revocable trust you can make changes as your wishes changes over time.

Here are the top seven reasons middle class families should consider creating a trust.

You Can Control the Distribution of Assets

You wouldn’t hand over your car keys to a child who has had no proper preparation for driving, and chances are you would not want to hand over all your assets to a teenager either. But if both parents die at the same time, the children would inherit all the assets upon their 18th birthdays. A trust allows you to specify how and when you want your children to inherit your assets.

You Can Protect Assets from Creditors

Placing an inheritance in a trust ensures that those assets are protected from your heir’s — or their spouse’s – creditors. For the best asset protection from creditors, consider a Lifetime Asset Protection or Wealth Creation Trust.

You Can Protect Your Inheritance from Spendthrift Heirs

Not everyone is good with money. If your heirs fall into that category, you can use a trust to ensure the assets are not frittered away due to spendthrift behavior. There is in fact a type of trust called a spendthrift trust, which includes a spendthrift provision to protect your assets. An attorney can advise you on how to best word this provision for asset protection and compliance within your state. 

You Can Protect Inheritance for Children from a Prior Marriage

Even with a will, sometimes estates can become complicated with blended families. You can use a trust to both provide for your current spouse and any children from a previous marriage.

Your Can Provide for a Special Needs Heir

Both federal and state programs have specific maximum assets the beneficiary can own in order to continue receiving benefits. Leaving assets outright to an heir with special needs could disqualify them from receiving these important government benefits. Leaving those assets in a trust bypasses this potential risk.

Your Estate Can Avoid Probate

Most assets can pass to heirs without going through probate by using a trust. This saves beneficiaries the time, expense, and emotional turmoil of the probate process. Probate is an expensive, public and unnecessary court process you can protect your family and estate from by creating a trust.

You Can Protect Your Privacy

Once a will is entered into probate, it becomes public record. In contrast, a trust is a private document that will protect your family’s privacy.

If you would like more information about protecting your loved ones, call our office at (281) 407-9830 or visit our website today to schedule a time for us to sit down and talk. Contact us today and mention this article.