Trusts require a bit more consideration and planning to add to an estate plan than a simple will. However, those who commit the time and effort necessary to create trusts often reap valuable benefits.
Trusts are useful estate planning tools for people in a broad range of personal and financial situations. The exact benefits you may derive from creating a trust will greatly depend on your current situation. However, there are certain benefits that apply to a large number of people planning their states.
What are some common benefits that come from adding a trust to your estate plan?
Less probate risk
Probate proceedings are sometimes necessary, but property or assets stored within a trust can often effectively bypass probate requirements through careful planning. Transferring larger or more valuable assets, including real estate, into a trust will prevent those assets from triggering probate proceedings, saving both time and money.
More options for leaving property to loved ones
While you may leave property to loved ones in a will, a trust allows you more options as to how and when you leave this property. For example, you may store your home or other real estate in the trust and instruct that your child will inherit the property at a certain age. Trusts also provide expanded options for loved ones with special needs. You may leave them property or assets without such inheritances prohibiting them from also receiving necessary government assistance benefits.
Greater control over your assets
One of the greatest benefits of creating a trust is having more control in general over your assets. You can choose to distribute property within your lifetime, at the time of your death or even at a designated future point. You can also maintain privacy with a trust. Michigan does not require trust details to be published into public record at any point.
There are numerous other financial and personal benefits associated with establishing a trust, but these three are arguably the most common reasons people add trusts into their estate plans. Learning more about how to protect yourself and your legacy as you age will benefit you and the people you love.