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What are the unique aspects of trusts?

On Behalf of | Sep 29, 2022 | Trusts

You have a range of options for how to set up your estate plan. There are various tools you can use or include.

One option is a trust. If you do not know much about this financial vehicle, you should take the time to learn a little about what makes a trust unique and how it can help you meet your estate planning goals.

No probate

Nerdwallet explains if you use a trust in your estate plan, you can bypass probate. Trust assets are already handled, so there is no need for them to go through probate. When you die, the trust is set up to automatically go into effect and transfer the assets or so whatever you have set it up to do.

More control

A trust is a very flexible option that allows you to set up the disbursement of your assets in any way you want. You can use a trust to place conditions or limitations on the assets you leave behind. It will enable you to leave little doubt about your expressed wishes. For example, if you want your heir to have to wait until they reach a certain age to receive the trust assets, you can do that. You can also create special trusts to give money to charity or even take care of a family pet. In general, a trust gives you a lot more control over what happens after you die than other types of estate planning tools.

The trustee

Keep in mind that a trust requires you to choose a trustee who will manage the trust assets. This person must be trustworthy and someone you can count on to follow your wishes and properly manage the assets.

So, while there are many benefits to a trust, you need to be careful in setting it up to get the most from it.