A trust is a legal document that outlines the distribution of your assets when you pass or if you cannot make decisions for yourself. When you establish a trust, you appoint a trustee to manage the assets within the trust in your place.
Here are five of the many benefits of establishing a trust.
1. Avoids the expense and delay of probate
Unlike a will, which must go through probate, a trust typically can bypass this slow process. With a trust, the transfer of assets to beneficiaries is faster, smoother and cheaper.
2. Protects privacy
When a will passes through probate, it is a public record. Because trusts avoid probate, their contents remain private, making a trust ideal for families who do not wish to share the details of their financial affairs with others.
3. Secures assets for future generations
Trusts allow you to customize your wishes in detail. You can outline who your beneficiaries are, which assets they receive and when they receive them.
4. Helps your family during your lifetime
If you become unable to manage your affairs, a trust can help your family manage them for you by giving your trustee legal authority to act on your behalf.
5. Allows for adaptability
A revocable trust is a flexible document, allowing you to amend its contents as life changes happen.
Including a trust in your estate plan can allow you to continue providing for your loved ones long after you pass and may make the transition smoother for those you leave behind.