As you watch your children grow and perhaps also have careers, partners and children of their own, it will likely become increasingly important to you that you take care of the wealth that you’ve acquired during your lifetime, so that you can pass it on to the next generation. One great way to do this is through a living trust, which is a more flexible alternative to a will.
Living trusts exist for the primary goal of the grantor wanting to pass on his or her wealth and assets to loved ones both after his or her death and during his or her lifetime. It can be preferable over a will because it carries with it a great deal more options. This includes the ability to avoid probate, which can be costly and can incur delays for the beneficiaries of the estate. Probates are also public, and choosing a trust can help keep the details private.
Trusts help you to make wise choices for your beneficiaries, including what age they should turn before they receive their inheritance. In this way, grantors that start a trust can impose rules and regulations that will hold true after their death.
They can also ensure that you build your legacy and keep all money inside the family. This includes provisions such as a qualified terminable interest property (QTIP) that maintains that all assets keep within the grantor’s family, even if the surviving spouse remarries.
Trusts provide listless advantages over a standard will. It is important to research and consider all implications of starting a trust as well as engage in reflection on how your would like your family to benefit.
Source: fidelity, “Reasons to consider a trust,” accessed Oct. 27, 2017