When it comes to estate planning, it is important to have the necessary documents in place and take the correct steps to ensure your assets pass to your intended heirs. There are a few ways you can do so, such as creating a will, putting your assets in a trust, or just letting the probate process handle the distribution process. Check out a few situations where a trust is a smart addition to your financial situation.
You Want to Disinherit a Child or Have One Child Receive Significantly More of Your Assets
If you know that you want one child to receive significantly more or less of your estate, you need a trust. Wills are an option, but they are more easy to contest than a trust. Avoid letting your estate go through probate at all costs, as probate distributes your assets according to the laws in your area.
A trust lets you dictate exactly how you want your assets to be distributed and who you want to receive each item. The specificity makes the trust difficult for a disgruntled heir to successfully contest.
You Have Specific Instructions Concerning Your Assets
You may have specific plans for your assets, even after your death. For example, you may want the individuals who take your pets after your death to have a certain sum to use for pet care. Or you may wish to bestow a gift to your favorite charity rather than leaving the money to your heirs. If you have a disabled adult child, you can use the trust to ensure that your child is always provided for in a manner that you find suitable, even after your death.
When your estate planning requires detailed instructions, a trust is a necessity. It lets you be as specific as you need to be concerning the timing and distribution of your assets.
You Own Out-of-State Property
Without a trust, property in a state other than your primary state will have to go through probate. You can avoid this costly, time-consuming process by placing the property in your trust. It then passes to your stated heir. The same principle applies to property that you own in another country. Having the property in trust helps make the process of passing the property to your heirs less complex.
You Value Your Privacy
When you allow your estate to go through probate, be prepared for your financial information to become public information. If you prefer to keep your financial situation private, a trust can help you do so. Contact a firm like Wright Law Offices, PLLC to learn more.