Accordingly to a recent article from Merrill Lynch, many people still believe that a trust is only for the very wealthy. On the contrary, a trust allows someone of even modest means to ensure that his money is distributed as he wishes after his death. Merrill Lynch points out the three benefits of a trust:
More Control. A trust can set rules or conditions about when and how money is released. For example, you can establish a trust that sets a specific age or a milestone, such as graduating from college, as a condition for an inheritance to be paid.
Protection. A trust can make sure that your children, or their children, will receive their inheritance even if you divorce or remarry. It can also help shield assets if your heirs divorce or are in a profession with a high risk of litigation.
Investment Guidance. A trust allows you to appoint a professional trustee to handle a family business or investment properties so that your heirs are protected from making mistakes due to inexperience. The trustee can also manage assets for younger heirs until they reach a suitable age to make their own decisions.
If you are new to estate planning and not sure where to start, contact us today for a free consultation.