Getting a trust for an estate plan is often presented as something that everyone should do. However, trusts are not always needed and have some drawbacks of their own.
If you type "estate planning" into an Internet search engine, you are likely to see many articles recommending that you need a revocable living trust. These are the hottest tool in estate planning. This is, in part, because they are often good options for people.
On the other hand, these trusts are also suggested so frequently, because there are many non-attorneys “selling” trusts who do a lot of advertising. The truth is that not everyone needs a trust.
In some states, the process of going through probate for relatively small estates is cheap and easy. Therefore, there is no reason to avoid it with a trust. Another potential problem with trusts is that choosing the wrong person as a trustee, can result in a disaster difficult to fix.
There are some times when trusts are the best option as the Wills, Trusts & Estates Prof Blog discusses in "Estate Planning, Is a Trust Beneficial?"
Situations where a trust is a good idea include when you have a blended family and want to leave assets for your spouse, while making sure that your children from a previous marriage will still have something to inherit. Another reason a trust might be a good choice is if your intended beneficiary is not responsible enough to handle money or has a lot of creditors. Trusts can also be used to help with estate tax issues.
To know whether a trust is right for you, talk to an estate planning attorney about it.
Reference: Wills, Trusts & Estates Prof Blog (March 28, 2018) "Estate Planning, Is a Trust Beneficial?"
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