You probably have plans on how your estate should be distributed to your loved ones after you are gone. However, you should not limit your estate plans to just a will. It could end up negatively affecting your beneficiaries and the estate at large.
A trust is one of those estate planning tools you should consider incorporating into your final wishes. It could save you a lot while protecting the interest of your heirs. Here is why.
The potential benefits of a trust
Perhaps the most important advantage of a trust over a will is that you do not have to go through probate – which is an expensive and time-consuming court process. Moreover, probate is a public process, which could expose personal information about your family and finances to others.
A trust can also protect the estate from creditors. When your beneficiaries get in debt and cannot repay what they owe, assets in the trust cannot be repossessed since they belong to the trust and not the individual.
Lastly, unlike with a will, a trust gives you more control over how things will go even after you are not around. For instance, if you have a loved one with special needs, you can provide for them using trusts without affecting their eligibility for government support programs.
Getting started with your trust plans
There are other perks of a trust not listed here that you can enjoy with a trust. However, you need to learn more about how they work and the kind of trust that will work best for you.
Certain mistakes when setting up a trust could invalidate and derail your estate plans, so early legal assistance is wise.