Misinformation or simply a lack of information could result in many Arkansas residents missing out on legal options that could be useful to them. In particular, numerous individuals may mistakenly think that they do not have enough money to create a trust when making their estate plan. However, that is likely because they do not know that trusts do not pertain just to those who are hoping to protect their wealth.
While preserving and protecting assets can be a useful reason to create a trust, the following other reasons may be worth considering as well:
- Having control over assets that may be intended for someone with a substance abuse problem or who does not handle their money well
- Ensuring that a special needs loved one receives an inheritance without putting their government benefits at risk due to a sudden windfall
- Removing assets from the estate in hopes of qualifying for Medicaid later on
- Providing a way for a trusted person to manage the inheritance of a minor
- Leaving specific instructions for when and how assets can be distributed from the trust rather than allowing heirs to receive all the assets at once
It is also worth considering that trusts do not only have to serve a purpose after a person’s passing. A living trust could allow a person to set aside assets while acting as the trustee him or herself. A successor trustee would then take over the management of the trust if the original trustee becomes incapacitated or passes away.
The ways in which trusts could benefit Arkansas residents’ estate plans vary, which is why it is important for interested individuals to thoroughly look into this option. If they simply write it off thinking it is only for the wealthy, they may miss out creating a more comprehensive plan. Discussing the specifics of their estates and wishes with experienced attorneys may help them come to an informed decision.