You may not have thought about placing your assets in a trust. It might seem too complicated, or you may think it’s just not necessary at this time. And thinking about a trust also means thinking about not being around anymore, and that’s never pleasant. But there are some good reasons to consider seeing an estate planner and discussing the pros and cons of putting your assets in a trust.
What Is a Trust?
Very simply, a trust is a big box where you can store your assets until you’re ready to give them to someone else. Unlike a will, which is a list of directions for giving away your things, a trust is more like a gift you give to others when you’re gone.
Once you place items in the trust, your assets will stay there until you take them back out again. In an irrevocable or unbreakable trust, nobody can take them out. They are there until you die, and they are given to the beneficiary. In a revocable trust, you can take things out, but the beneficiary cannot. In some cases, you or the beneficiary may receive payments from the trust, like stock dividend payments.
A trust lets you control who has access to your property, and when. Trusts also allow you to disburse some of your assets before you die and to provide for minor children or for disabled or special needs family members who may not be able to manage their own funds. Your estate planner will discuss the benefits of a trust with you. Contact us today.
Four Reasons To Establish Your Trust
You may think you don’t need a trust, but consider these benefits:
- Control of your assets. The trust does not exist until it is made, but after that, the trustee has total control over the trust. You will be able to manage where your assets go, who has control of them, and when they are dispersed. For instance, if you want a trustee to handle your children’s finances until they are out of college, the trust structure provides the way for them to do that. Your children remain the beneficiaries and can receive payments from the trust.
- Avoids probate. A trust goes into effect immediately upon the death of the grantor (you). At this point, the trust becomes irrevocable, and nothing can be changed, so there is no need for a judge to make any decisions about interpretation. The trustee can make any distributions needed and manage the other trust property as before.
- Provide for minor, disabled, or spendthrift beneficiaries. By designating certain assets ahead of time for beneficiaries who will need a designated trustee, you can ensure these individuals are properly cared for. If you have beneficiaries whose access you want to restrict, there are ways to prevent them from receiving too much money at once.
- Protection in case of disability. Living to extreme old age in good condition is no longer an impossibility, but assisted living facilities are not cheap. Placing your assets in a trust today can be a way to ensure you have the funds you need to live your twilight years in comfort rather than squalor.
In some situations, you should always have trust arrangements in place. If you have a special needs child who is unable to live outside the home, long-term financial planning is a must. Someday you will not be there for your child, and you do not want to leave them to the kindness of strangers.
This is also true if you have a family history of any mental or physical degenerative diseases, such as Alzheimer’s or Parkinson’s disease. The worst that could happen is that you reach healthy old age with extra money in your trust.
How We Can Help
There is no wrong time to make your estate plan. If you have concerns about your future, you should start thinking about how you want to have your property managed when you are not here to do it. Financial planning is the best way to be sure your loved ones are cared for if you are not here to look after them.
Anyone can establish a trust, provided they have something to put into it. You don’t need to be wealthy or have lots of property to have a trust. If you want to discuss your estate plan, contact the Dallas estate planning lawyers of Staubus and Randall at 214-691-3411 to schedule a consultation to talk about your assets and the right kind of trust for you and your family. We have the experience you need.