D is for the Dangers of Not Having a Trust

D is for the Dangers of Not Having a Trust

You have worked hard for your assets. Whether through the business you built, the money you invested, or perhaps the assets you inherited from past generations. Either way, these assets are essential to you and future generations. So how do you move forward and protect these assets? 

Many believe having a will is all they need to ensure their end-of-life wishes are adequately executed. Yes, a will is better than having no plan at all. A better solution may be to establish a trust to protect you and your family now and into the future. A trust can protect and manage your wealth in the specific way you wish to have your assets managed. A trust can protect assets both while you are here and present, as well as long after you are gone.

There’s a shared misunderstanding that trusts are only for wealthy people with lots of assets. Many people also incorrectly think a will is all they need to ensure their end-of-life wishes are satisfactorily executed. But, establishing trust for your assets can minimize the difficulty your family will face now at your death.

There are different types of trusts, so it is important to talk to your financial advisor to determine which type is right for you.

Here are some reasons why not having trust could be dangerous for the financial future of yourself and your family:

Simply having a last will does not avoid probate. In fact, a will must go through probate.

The will is filed with the court, and a personal representative is appointed to gather the decedent’s assets and take care of any outstanding debts or taxes. This means your assets can be tied up in the court system for longer than you or your family would want, and it may cost thousands of dollars for court fees and attorneys before the assets are distributed to the beneficiary.

Suppose you have unique circumstances, such as needing to care for a child or parent with special needs and/or managing the family business or generational wealth. In that case, a trust allows for specific instructions and conditions to apply to your assets. This is essential to make sure that everyone involved is protected.

Trusts are more specific than wills. There are many different types of trusts for your specific needs, such as estate planning, charitable donations, and tax reduction. Our favorite trust is a South Dakota Trust – take this questionnaire and determine whether this is the right one for you.

Don’t let a dangerous situation happen to your assets. Be prepared and create a solid estate plan with a trust. Be sure a talk to a trusted financial advisor and estate planning attorney today and find out which trust is right for you.

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