The best time to create a trust is before one is needed. Unfortunately, it’s impossible to know exactly when we’ll need a trust. That’s why it’s best not to wait.
Why establish a trust?
The benefits provided by a trust can be important to your family in the difficult time that will follow your passing or an event which left you incapacitated. We already have an article detailing some benefits that trusts provide and you can read it for a more advanced understanding. The short list includes increased control, tax benefits, avoidance of the probate court system and probate/legal fees, and most importantly it can help make your passing a less painful experience for your loved ones.
Are trusts expensive?
Price can range depending on the type of trust being established. Personal trusts can cost several thousand dollars. Many consider this to be a cheap alternative to the probate court system which traditionally charges fees based on the value of your estate while administering and distributing your assets. If your $1,000,000 estate was subject to a probate fee of 5% of the estate’s net value, that would prevent your heirs from receiving $50,000!
Does a Trust have to be updated often?
Some worry that establishing a trust will cause them to pay expensive legal fees updating it each year. This isn’t necessarily the case. Although, minimal modifications are sometimes needed to keep it up to date as laws change.
Don’t have a trust, but think obtaining one might be the best thing for your loved ones? Let’s talk about how a little planning can go a long way. This article does not constitute legal advice please see the counsel of a qualified professional.
To speak with Michael Romanello over a phone call, Zoom video call, or an in person meeting click or call 440-871-3067 Discuss how a Trust could benefit you with a qualified financial professional who has 18+ years of experience.