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When should you consider a trust in your estate plan?

On Behalf of | Jan 24, 2025 | Estate Planning

Trusts are one of the tools that are available for people who are creating their estate plans. These are ideal for individuals who want to preserve their wealth and pass down their assets to their loved ones. 

Some people may assume that trusts are only appropriate for high-value estates, but that’s not the case. These are useful for individuals in a variety of financial situations. 

Need to streamline the estate

Trusts can help to streamline the distribution of the estate because they don’t have to go through the probate process. Instead, the contents of the trust are passed down to loved ones in accordance with the terms of the trust. 

Want to control asset distribution

Establishing a trust enables you to outline who will receive what assets and the terms of that distribution. This is determined by the type of trust that’s set up, so it’s critical to discuss the ultimate outcome that’s desired for the trust and beneficiaries.

Desire to help charities

If you want to use your estate to help support one or more charities, you can do this using trusts. You’ll have to decide if you want the charities to get their share before or after your loved ones get what you have for them because that decision will impact the type of trust that’s established. 

Including one or more trusts in an estate plan can be a valuable way to make your wishes known. Working with someone who’s familiar with creating a comprehensive estate plan can make the process a bit easier for the creator.