Do I Need a Trust as Part of My Estate Plan?
Trusts are a diverse group of tools used for asset management and estate planning. Trusts can be used to avoid probate and estate taxes. They have many uses and are often the best way to guarantee that an estate will be distributed according to the decedent’s wishes. It’s important, however, to understand that not everyone needs a trust.
Unlike wills, which should be part of both the simplest and the most complex estate plans, trusts aren’t always helpful for you or your family. In fact, creating a trust when you don’t need one can actually have negative consequences for your estate and its beneficiaries.
Why do so many people create trusts when they don’t need them? Some unscrupulous attorneys run “trust mills,” firms that focus on charging clients to create trusts whether they need one or not. When an attorney is acting as a salesman instead of an advisor, you may end up with an estate plan that doesn’t meet your needs. There are also many types of trusts, so if you choose to have one, it’s important to understand what each type of trust offers.
In all cases, meeting with an experienced and trustworthy estate planning attorney is the right decision. A knowledgeable attorney can help you determine whether you need a trust at all. Many of the benefits of trusts can be obtained in other ways, such as making certain accounts payable to a beneficiary after death. If trusts make sense for you and your family, your attorney can help you create the right number and type of trusts for your estate.
If you have questions about trusts or estate planning, get answers from an experienced Florida estate planning attorney at the Charles Law Offices today.