When thinking about the importance of various estate planning documents, the one that come to mind most often is the will, but a trust can also be extremely beneficial for your overall estate planning goals. While a will is a basic document that will outline who will receive your property in the event that you pass away and allows you to name guardians for your minor children, a trust is somewhat more complex.
Trusts are legal documents that allow you to place assets inside on behalf of a beneficiary or beneficiaries. It can be challenging, however, to know when it makes sense to add a trust to your estate plan. There are four major things you need to consider when determining whether or not this is in your best interests:
- Privacy
- Owning property in various states
- Wishes for philanthropy
- Greater control
Although a trust might initially be more expensive than a will to set up, you may find that it helps you accomplish these goals significantly. Greater privacy and greater control over what is placed inside of a trust can benefit you and those you wish to receive assets in the future. Many individuals love the fact that greater rules and control can be exercised when establishing a trust when compared with a will.
Privacy is also another key concern. If you have only a will, it is more likely that your entire estate will pass through probate. If you have assets that would usually be subject to probate, you can place them inside a trust instead and preserve some of your legacy.
Talk to your Massachusetts estate planning attorney to learn more about these planning options.
