Considering a Trust

Manydon’t realize that trust funds can be an incredibly useful tool formiddle-class families.  Here are some reasons you may want to consider executing a trust:

1. Your kids shouldn’t inherit atage 18.  If you and your spouse were topass away at the same time, your children, by default, would inherit all ofyour assets at once, usually at age 18. Many parents would agree that their children at age 18 would be tooyoung to handle significant assets outright and would rather use a trust tostagger distribution dates.
2. You want to protect your childrenagainst creditors.  If your children inherit moneyin a trust, that inheritance will be protected from creditors.
3. Your beneficiary isn’t goodwith money.  A trust may be appropriate ifyour beneficiary demonstrates poor decision-making or may be susceptible tooutside influence.
4. Your family situation iscomplicated.  If you have children from previous marriages,you may want to create a trust that looks out for your spouse as well as yourchildren.
5. You would rather avoid theprobate process.  When your estate goes throughprobate, you will need to have an attorney, go to court, and waste time in theprocess.  It’s easier to put your assetsin the name of a trust and have it administered in that way.
6. You have a disabled child.  Special trusts allow children with special needs to inherit yourestate without the risk of losing government benefits.
7. You’re worried aboutprivacy.  Wills become public afterdeath, but trusts are private documents.

See Libby Kane, Is a Trust Right for You?, Fox Business,Oct. 25, 2013.