It’s a common mistake to think that trust lawyers offer help only to people who have a lot of money. Nothing could be further from the truth. There are many uses for and strategies behind trusts. The starting point is the use of a trust as an efficient and powerful management tool. The reality is, even if you do not have a lot of money, using a trust to manage your affairs can be an important tool. A trust can protect your assets, provide for your care and that of your loved ones in the event of your incapacity, and reduce the complexity and cost of managing your affairs at death. A trust can be a great tool for helping and protecting your loved ones.
There are many ways that trusts can help people even if those individuals don’t have tons of property and assets. You can reach out to Clarity Legal Group to find out if a trust would be a valuable legal tool for you to use.
Trusts Can Allow Loved Ones to Inherit More Quickly
When your family depends upon your income for their support or to pay the bills, it can be a big problem if you pass away. You may intend for your inheritance to give your loved ones the money to continue being able to cover the bills.
However, Investopedia estimates it could take a year to complete the probate process. This means your heirs or beneficiaries won’t have full access to their inheritance during that time. Your loved ones who were counting on an inheritance to meet their needs could face serious financial trouble if there is a long delay from your death to when they are able to inherit the money you have intended for them. A trust can expedite the access to funds if that is your wish. This means your loved ones won’t have to wait so long to get the money they need.
Regardless of the level of your wealth, access to and control of an inheritance on a timely basis can be critical. Trusts can be estalished giving a Trustee authority to be flexible enough to meet the needs of family members of others who are your intended beneficiaries.
Trusts Can Help You Provide for Young Children if Something Happens to You
If you have young children and you pass away, you will likely want to provide for their continued financial support. This may involve providing an inheritance from assets you have acquired during your life. You may also purchase a life insurance policy to provide for your kids. The problem is, children can’t directly inherit and can’t manage money.
If you haven’t addressed this issue through the creation of a trust, the court may appoint a guardian to manage your child’s inheritance. The child could also inherit everything with no strings attached at age 18, which may be well before your son or daughter is responsible enough to handle having so much money.
A trust lets you select who will manage the inheritance for your child. It gives you the ability to retain control for longer to ensure your child is not handed too much money to manage responsibly.
Trusts Can Help You to Provide for Disabled Children
If you have a child who is disabled, you can create a specific type of trust, called a special needs trust or supplemental needs trust, that will allow you to provide an inheritance without putting means-tested benefits like Supplemental Security Income or Medicaid at risk.
Getting Help from Trust Lawyers
These are just a few of the many key ways that trusts can be useful to you even if you do not have tons of money or assets to put into a trust at the time it is created. There may be many other situations where creating a trust is valuable for middle class people and people at a variety of income levels. Because trusts are so versatile and powerful, you should reach out to an attorney to find out specifically whether a trust is the right choice for you.
Clarity Legal Group can work with you to evaluate your personal family and financial situation and to determine what types of tools, including trusts, can help you to accomplish your goals. To find out more, give us a call at 919-484-0012 or contact us online today.
Latest posts by Mark Costley (see all)
- Understanding the Types of Special Needs Trusts - October 26, 2019
- 5 Things You Need to Do Immediately If You Are the Executor - June 6, 2019
- New Tax Proposal re: Retirement Savings - June 3, 2019