At some point, we will no longer be around to take care of our loved ones. Taking the time to create an estate plan will ensure one’s wishes are met when the inevitable takes place down the road. But can a will alone meet all your needs? There are a variety of scenarios in which individuals benefit from starting a trust to supplement their estate planning. Here are four examples of how a trust could benefit you!
What is a Trust?
Put simply, a trust is a document that holds property or assets for a specific group of beneficiaries. The most crucial thing to remember is that wills only take effect after an individual has passed. Until then, if one were to become incapacitated, they would be unable to provide critical information regarding the handling of their finances. Trusts, on the other hand, go into effect the moment they are signed.
Why Might Someone Start a Trust?
- Bypass Probate. The primary advantage of starting a trust is that it allows families to bypass the often-lengthy probate process. While the process can otherwise take up to two years, a trust grants your beneficiaries instant access to their inheritance. Plus, you can also avoid pesky probate fees that add up quickly.
- Eliminate Beneficiary Arguments. There is no question that the details of an estate plan can trigger family feuds. Luckily, trusts can prevent this unnecessary drama during the grieving period because of their complete customizability. Additionally, trusts are more resistant to contesting than a standard will, meaning one can ensure their exact wishes are being met after their passing.
- Divide Property. If your assets include real estate, you could potentially benefit from starting a trust. This way, you can spell out how the property will be transferred, who can access the property, how shared inheritors can buy out the property, and whether the property can be sold.
- Fund Your Favorite Causes. Starting a trust also gives individuals the flexibility to support a cause of their choosing after their passing. Whether you would like to set aside funds to cover a family member’s tuition or donate to a charity of your choosing, a trust will empower you to do so.
Contact Mobley & Brown, LLP for Assistance with Your Estate Planning Needs
If you are searching for an estate planning and family law attorney in Maryland and unsure where to turn, contact Mobley and Brown, LLP today. Our experienced legal team will work with you to meet your needs. Call us now at (410) 385-0398.