While it might be an uncomfortable subject for people in Sacramento to broach, the realities of life are that death is inevitable. With that in mind, people with children need to be aware of the various options that are available when it comes to estate planning. This is especially true if the children are young. Having a grasp on what works best for the individual can help in making an informed choice.
People from many financial circumstances with large financial assets can derive benefit from having a trust. Having a grasp on the benefits of a trust versus other potential choices can help with the decision. Some believe that all they need is a will. If there are not a great deal of assets, then a will is fine.
Nonetheless, a trust can also be useful. Those who have accrued wealth or have a life situation that is complex with more than one marriage and children from different relationships can benefit from a trust. It is not prepared in lieu of a will, but as an addition layer of protection.
Trusts accord greater control. Giving an adult child a moderate-to-large estate can be damaging, if they are not able to handle it. To account for that, there can be a schedule to distribute predetermined amounts at specific periods. It is even possible to require that some of the money be used for education.
A trust will avoid probate. Probate means that the court will supervise the will validation. Assets will be subject to inventory, there will be an appraisal of property and bills will be paid. Probate can result in substantial fees. Having a trustee can bypasses probate.
Information will not be made public, if there is a trust. Finally, estate distribution can be completed as the grantor desires it to be done. If there is one beneficiary who the grantor wants to receive more than another, a trust can mandate this to happen.
A trust is a way to provide for children in a way the grantor sees fit. Consulting with an attorney can provide more information in the benefits of trusts and help in making an informed decision and moving forward with it.
Source: WiseBread.com, “Should You Set Up a Trust for Your Child?,” Matt Bell, Feb. 25, 2016