Trusts have become an increasingly-popular estate planning tool, especially for younger individuals. Trusts have been touted as offering many benefits over the traditional will, but some older individuals or those who are committed to doing things in the same manner as their parents and grandparents may be reluctant to jump on board the bandwagon when it comes to trusts. However, what these individuals have heard about trusts is true – they do offer benefits that the traditional will does not provide.
Why a Trust May Be a Better Option than a Will
To be clear, a trust is not the right estate planning tool for every situation. Trusts can be more complex and more costly to set up and manage than a will. For an individual who has few assets and few heirs, a will may be the appropriate method by which to accomplish the person’s estate planning goals. However, a trust might be more appropriate if:
- You are worried about your heirs running out of money: In a will, heirs receive their inheritances outright and are free to dispose of the inheritance in any way they choose. If this is a concern for you, you may want to look into a trust as you are better able to control how much your heirs and beneficiaries receive at any one time. You may specify in the trust that your heirs and beneficiaries receive a certain amount of money each year, increasing the likelihood that your financial gifts and legacy will go farther.
- You have children from a previous marriage: A trust can be used to ensure that all of your children, including those from a previous marriage, are financially cared and provided for following your death.
- You are concerned about drug or alcohol use: Because there is a trustee who oversees the administration of a trust, you can give the trustee the power to withhold distributions to heirs and beneficiaries who are struggling with drug and/or alcohol addiction. This would help ensure that the inheritance you leave them is not used to fund their addictions and poor choices.
- You do not want your spouse to forget you: If you are concerned that your assets and inheritance will be used by your spouse to start a new life with a new beau or paramour, a trust can help prevent this from happening. Unlike a will, a trust allows you to specify that trust assets (including any retirement or life insurance policies owned by the trust) are only used to pay for the living expenses of your spouse while he or she is still alive.
Contact Us to Evaluate Whether a Trust is Right for You
Contact the Law Office of John C. Grundy today and see if your situation is better served by a will or a trust during your initial no cost consultation. You can call our office at (330) 637-9030 or contact our firm through our website for prompt and experienced assistance.