Trusts are not limited to the wealthy, but are for anyone desiring to protect their estate
Trusts are not only for the wealthy. Trusts are for anyone who owns a home and even has modest level of additional assets and retirement accounts they desire to pass to their heirs. When left in a Will to go through probate, those assets can be whittled down through probate court fees and can stretch for months to formally allocate and settle, ultimately according to the government’s directives. Additionally, Wills also have a significantly higher percentage of challenges between heirs and non-heirs who might feel left out.
A Family Trust is the best way to establish your financial legacy. A trust provides protection from creditors, and not just the creditors of the estate but also from creditors who might have a claim against an heir of the estate. That equates to a second layer protection, since often times families might be unaware of the financial struggles other members may be facing. This keeps your inheritance to them from being eaten from an heir’s poor decisions.
If there is a special needs member of the family needing long term care, and who cannot show to have any assets due to Social Security Disability Income payments, the Trust protects those assets to be used for the special needs heir. All without risking the SSDI they may be receiving.
Assets can be allocated over time to heirs based on age to assure a smooth transition of assets that don’t suddenly just fall into the hands of an heir who might act irresponsibly with the newfound assets. We all want to trust our heirs, but sometimes having a leash on those assets help secure a more long-term future of responsible financial management. Additionally, most do not want those assets to suddenly fall into the hands of a divorced spouse.
The features and benefits of a Family Trust cover many more areas, but these are just a few of the highlights. Ascend Financial provides full Trust services for its clients. Click here to learn more.