When it comes to planning your estate, the most common advice you'll hear from anybody is to make a will. However, a will may not be the best way to go about doing it. There are limitations to using a will that people are not aware of when the best solution is actually to create a trust. Here is why you should use a trust for your estate rather than a will.
A Trust Offers Privacy
Were you aware that wills become public record after the person passes away? This means that anybody can find out exactly who you left your estate to and how much it is worth. This may not be ideal for your situation if you are looking for some privacy.
One benefit of using a trust is that the contents of the trust never become public record. They remain private, even after you pass. This can be beneficial if you want to leave money to certain people, but do not want it made public how much they are receiving. It also helps stop arguments that are made when an estate is divided publicly.
A Trust Offers Control
There are blind trusts and revocable living trusts. Make sure you know the difference between the two because the latter offers complete control of your assets before you pass. Once assets are put into the revocable trust, you still change who the assets will go to up until the end. After passing away, any conditions will be put into motion to divide your assets according to your wishes.
Revocable living trusts are often used to delay how money is distributed to children, so they do not all receive a lump sum of money all at once. Instead, you can even put conditions on how money is distributed. You may have a request that a child uses the money to go to college, that money is set aside from someone with special needs, or that a specific amount of money is given each year.
A Trust Offers Protection
You do get protection from some of the taxes that normally have to be paid with a will. At the very least, you can reduce some of those taxes paid simply by having the money in a trust. You will also save money by paying for legal fees and court costs associated with executing a will. This will leave more money to be passed on to your heirs.
For more information, contact your preferred estate planning service.