A trust may take effort and time to plan, but it can be worth it for individuals who are planning a will or retirement or who want to manage family wealth. If you’re on the fence about trusts and how they can benefit you, we have compiled a list. Learn more about the benefits below.
Avoid the Probate Process
Probate can be complicated and cause stress within families. It can be even more difficult without a will to help the executor. You can reduce familial stress by setting up a trust to distribute assets to whomever you wish. A trust can ensure that your loved ones are taken care of. Most importantly, a trust does not normally have to go through probate.
Related Article: What is the Difference Between a Disbursement and Distribution?
Protect Yourself with a Trust
Trusts allow you to choose the details of how your assets are distributed after you pass – however, they can help while you are still alive as well. If you become ill or disabled during your lifetime, you can create a safety net with a revocable trust. That means you can change the details of the trust and set aside finances for medical assistance you may need. This can ease the burden on family members if you were to become incapacitated.
Create a Plan on Your Terms
With trusts, you can create conditions or parameters regarding how your assets will be used by beneficiaries. Your trust can be as detailed as you like. Whether you plan to provide a certain amount each year or release funds contingent on life events is up to you.
Are you a beneficiary? Read more about what you are entitled to below.
Related Article: When Are Beneficiaries Entitled to Distributions?
Stay Flexible Without Worry
There are two types of trusts – irrevocable and revocable. The biggest difference between the two is the flexibility to change the terms of your trust. A revocable trust allows you to make changes to the trust during your lifetime, while an irrevocable trust cannot be changed. Situations may change over time, such as adding a new family member or shifting your priorities, so give yourself flexibility with a revocable trust.
Have a question about trust? Schedule time with Marcia Campbell, CPA.
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As the most experienced CPA in the Inland Empire who specializes in working with seniors, Marcia L. Campbell is committed to helping each client thrive by caring for their personal and financial wellbeing with genuine interest, well-established expertise, and a focus on respectful partnerships. Marcia’s team specializes in a number of services including elder & financial care, court & trust accountings as well as private fiduciary and tax services. At Marcia L. Campbell, CPA, we understand the importance of our clients’ individual needs and are committed to helping them make the best personal and financial decisions for their future.