What to Consider Before Creating a Trust
You may have been told that you should have a living trust as part of your estate plan. While this may be an effective way to meet your goals before and after you pass, it may be possible to protect your interests without a trust. Let’s take a look at the potential pros and cons of using this estate planning tool.
Why Should You Create a Trust?
Perhaps the best reason to create a trust is that its terms can take effect as soon as the document is executed. The terms of a will don’t take effect until after you pass on, which could make you vulnerable if you’re ever mentally incapacitated. Other potential benefits of a trust include the ability to keep assets away from creditors or away from a child’s spouse if your son or daughter were to get a divorce.
When Are Trusts Not Worth Creating?
Trusts may be less than ideal for those who could pass their assets through a beneficiary designation or similar tool. You may also want to avoid a trust if you’re comfortable leaving assets directly to your adult children or other beneficiaries. It is also worth considering that trusts can cost thousands of dollars to establish and fund.
How to Learn More About Trusts
A trust administration lawyer in Las Vegas may be able to talk more about the pros and cons of creating a trust. If you do decide to create one, a lawyer may be able to act as a trustee. This can be beneficial if you don’t have anyone in your life who is responsible enough or willing to oversee your estate. It may also be possible to have both a trusted friend and an attorney work together to manage your assets after you are gone.