Once a tool for extremely wealthy individuals, trusts have gained in popularity over recent decades. Changes in laws governing trusts and the development of new approaches to estate planning have made trusts an invaluable tool for many working class families to ensure they are able to provide financial security to their loved ones. A trust can help make sure that your assets are distributed according to your wishes in a variety of different ways, some of which are discussed below. An experienced estate planning attorney can review the various types of trusts that you may be eligible for and can help you determine the right type and structure to achieve your estate planning goals.
Trusts Can Avoid Probate
The majority of trusts are established during a person’s lifetime, and these trusts will be eligible to avoid the probate process. While the New York probate process is less difficult than the probate process in other states, it can still be time-consuming and costly. Trusts are an effective way to allow loved ones to access the assets you wish to distribute to them without waiting for the probate process to be complete. Ultimately, this saves you time and money in addition to keeping assets within the trust out of the public record associated with the probate process.
Peace of Mind
Trusts can provide peace of mind for everyone involved, including the heirs as well as the individual establishing the trust. Knowing that assets within a trust can avoid probate helps you rest assured that courts will not be able to interfere in how you wish to distribute your assets. It is also reassuring to know that many trusts can be designed in a way that protects them from creditors, legal judgements, and other life events like divorce that can have a significant impact on your estate.
Provide for Minors
Minors cannot inherit your assets directly, especially when it comes to important large assets like property. If you wish to distribute assets to a minor heir, then a trust can help make sure that heir receives those assets when they come of age. Trusts can also be used to hold assets for minors until such time as those minors are likely to be more financially responsible with their inheritances.
Protections for All Heirs
In today’s day and age, blended families are increasingly more common. Trusts offer a convenient way to provide for all of your heirs without regard to state statutes that could otherwise govern the distribution of your assets if you die without a Will or if there is a Will contest. There are also trusts that allow your current spouse and children from any previous marriages to receive your assets without significant tax liabilities they might otherwise incur or extensive legal processes that can be avoided through using a trust.
Cost-Effective and Readily Available
The more common trusts become, the more affordable they are for working class families. Trusts are much simpler than you may expect them to be, and they can be a cost-effective way of ensuring your assets are distributed according to your wishes. Depending on the way your structure them, they can be relatively inexpensive to establish and maintain. They also require less work to establish and maintain than you might otherwise have thought, which can help you devote more of your time and assets to your family and other heirs.