Planning for the future is a complicated and sometimes emotionally challenging process that many in Arkansas avoid. Estate planning is not always easy as one may not be sure what protections he or she will need for the future. There is no single estate planning solution for everyone, but every adult will benefit from having certain plans in place regardless of income level, the size of the estate and other factors.
If you have an estate plan, you may believe that your interests are secure and further action is not necessary. While you have taken the initial necessary steps to protect yourself and retain control over your assets, there are still steps you may find important for your specific goals. You may want to consider the benefits of a trust as a way to accomplish certain objectives you have for your estate assets in the future.
The basics of a trust
A trust is an estate planning tool that allows you to set aside and protect assets for a specific purpose. By transferring assets through a trust instead of directly passing them to an heir through a will, you can have more control over the assets in the trust. If you are unsure whether this would be a prudent addition to your estate plan, consider the following:
- There are various types of trusts that will allow you to accomplish a variety of specific estate planning goals.
- You can name a trusted person or party to oversee the distribution of assets held in the trust.
- Trusts can offer you a variety of benefits that may begin both before and after your death.
- When creating a trust, you will need to consider the benefits and potential drawbacks of this option.
- There are trusts for objectives such as the care of a special needs individual, charitable giving and more.
Adding a trust could be the most effective way to ensure that you have the final say over what happens to your assets after you pass away. If you want to care for loved ones, give to certain organizations, avoid probate and accomplish other estate planning goals, a trust could be a practical addition to your existing plans. A careful assessment of your estate and objectives for the future will help you understand what steps are best for your individual situation.