Two of the keys to estate planning are wills and trust, but what does one actually need?
Wills and trusts are two of the key strategies for passing on assets in estate planning—with a trust generally being the most complicated. The Brainerd Dispatch recently discussed whether a trust is necessary in “Commentary: When does it make sense to add a trust to your estate plan?”.
Considerations include:
- Privacy – Wills are normally made available to the public, but most trusts can be kept private. If you do not want other people to know the details of your estate, then a trust is what you need.
- Property in Multiple States – If you have property in more than one state, then a trust might be best. Otherwise, your estate may have to be probated in each state to deal with the property.
- Control – Trusts can offer you much greater control over how your heirs will inherit your assets.
- Charity – Trusts are generally a better tool for giving part of your estate to charity. If set up properly, you can even get a tax break now, keep control of your assets and have the assets go to charity after you pass away.
An estate planning attorney can guide you in your need for a trust.
Reference: Brainerd Dispatch (July 23, 2016) “Commentary: When does it make sense to add a trust to your estate plan?”
