One question that a lot of people have is if a trust is something that they need in their estate plan. Trusts are sometimes seen as legal documents that are only for the wealthy, but the reality is that they can help most people.
There are many different kinds of trusts that you could decide to use in your estate plan. You could opt for an irrevocable life insurance trust that protects the money paid out to a beneficiary, or you could opt for a living trust or revocable trust. There are many different types, which means that it is beneficial for you to talk to your attorney about which one might be right for you. The trust that you use should be selected based on how it can help protect your assets and your beneficiaries.
What is the most significant benefit of a trust?
Although opinions will differ on this point, one of the most important benefits of a trust is that it can protect your assets against creditors. This isn’t the case for all types of trusts, but for irrevocable trusts, assets are taken out of your name and not included in your estate. That means that any creditors that want to obtain compensation for past debts will not be able to take it from that trust. It is essentially off-limits.
This is just one of the benefits of having a trust, but it is a major one if you are concerned about potential debts after your death. Your attorney will work with you to determine which trust is best for you or if you could benefit from using multiple trusts. Our website has more information.