The Benefits of Creating a Silent Trust
A silent trust is one in which the beneficiary knows little about what he or she is entitled to. In some cases, a trustee is directed to speak to a representative of the beneficiary regarding any matters related to the trust’s administration. For the most part, a silent trust is designed to provide for a child or grandchild without making a public spectacle about how much the family is worth.
Silent Trusts Can Prevent a Child From Being a Target
If a friend, colleague or scam artists knew that a wealthy person’s child had access to a portion of the family fortune, he or she could be the target of a lawsuit.
Those parties may also try to use a young and impressionable family member as a means of funding a speculative business venture or a lavish lifestyle. However, if a child doesn’t know about an incoming inheritance, it provides a layer of protection for the beneficiary and the family as a whole. Read more on How to Account For Passwords in a Trust.
Silent Trusts Allow a Child to Build His or Her Own Legacy
An individual may derive a sense of pride or purpose from starting a business from scratch or working hard for a promotion at work. While those who benefit from a parent’s wealth could be hard workers in their own right, the presence of family money may tarnish their accomplishments.
Critics may argue that a beneficiary only got promoted to stay on a family’s good side or that family connections resulted in a start-up business being successful.
Trusts Can Also Help Prevent Probate
When properly constructed, trusts may make it easier for some or all assets to avoid probate. However, if necessary, a probate attorney in Las Vegas may review an estate plan to determine if there is a need to go through the process.