When planning ahead it’s very important to think about what you want to accomplish. What are your goals – for yourself and your family? Once you choose your goals then you can see what tools will best accomplish those goals.
A trust can often be the best tool to carry out goals such as:
- Avoiding the delay and expense of probate court.
- Transferring assets privately after death. (As opposed to a will, which is a public document.)
- Protecting assets from a divorce or lawsuit.
- Giving clear instructions for managing your money during your disability.
- Organizing assets so someone else can help manage them.
- Protecting assets from being used for nursing home costs.
- Leaving money to someone who is too young or too unwise to handle it by himself or herself.
- Avoiding estate taxes.
- Preventing family fights regarding a family farm or business.
- Balancing the wife and kids in a second marriage.
If your life’s circumstances fall under any of the statements above, you should consider drafting a trust.