Not Everyone Needs a Trust
Photo by Ronda Dorsey on Unsplash
Please be wary of seminars or law firms or AI blurbs that insist, “Everyone should have a trust.” Estate planning is not a one-size-fits-all activity, and an ethical attorney should provide a no-pressure, easy-to-understand assessment of your individual needs.
What Needs to be Considered?
To understand how much benefit a trust would provide in your unique situation, an attorney should consider a number of factors including:
Do you have special collections (e.g., artwork, guns, jewelry, etc.)?
Are you concerned about giving a large inheritance to someone who is young or who is not good with money?
Do you have an LLC, shares in a business, bitcoin, or other unique assets?
Who will be in charge of handling your estate when you pass? Are they responsible and good with deadlines?
Are there likely to be assets that end up in probate even though you have a trust?
Do you own land or real property in multiple states?
What are the Possible Pitfalls?
These are just some of the factors a good attorney will be considering. Depending on your situation, the probate process might be simple enough that a trust is overkill. And, contrary to aggressive marketing by some attorneys, having a trust does not always avoid probate. The truth is that without an individualized assessment, you can end up wasting money on an unnecessary trust that actually increases the amount of work for your family by requiring that they deal with two processes: probate AND a trust administration.
To be clear, trusts are a very powerful, flexible legal tool. In the right situations, a trust can vastly simplify things for your family after you pass. However, they are not the best option for every situation, and you deserve a careful assessment of your unique goals and specific circumstances. An attorney should never pressure you into getting a trust or rush you into making a decision about your estate planning.
At Hillsborough Wills & Trusts, our attorneys will meet with you free of charge to discuss your individual situation, talk about the differences between wills and trusts, and help you select a plan that makes the most sense for you and your loved ones.
Contact us at https://hillsboroughwills.com/contact or call today at 919-245-8440.