An estate plan is not effective if your assets do not end up with the people you want in the circumstances you want. However, life’s complications have a way of interfering. Although a will can ensure your assets go to the people you want to receive them, a trust can help ensure those assets are protected from unintended results.
For example, what if your child is facing bankruptcy at the time of your passing. Will your assets be able to help your child get back on his/her feet, or will they be used to pay your child’s creditors? As it relates to your money, would you like to control what happens, even if you have already passed? A properly drafted trust can provide exactly this type of protection.
We cannot know with certainty all the challenges which will interfere with our estate plans. In fact, those challenges are likely to be different for each of us. However, by understanding how a trust can provide protection (and how it cannot), you can decide if those protections will be beneficial in your circumstances. Best of all, you will not need to rely on someone else to tell you if you should have a trust.
The following are just a few examples how a trust can help:
- If your spouse has predeceased you, and you become incapacitated from a stroke, a fall, dementia or other factors, how can you ensure that your assets will still be used to take care of you?
- Do your children struggle with spending, creditors, marital problems, disabilities, addictions, etc.?
- Do you have a parent who is still relatively healthy but more and more susceptible to unscrupulous sales tactics or scams?
In these circumstances, and many more, a properly drafted trust can help you maintain necessary control.
© 2016 Steven J Wright