Estate Planning Lawyers
There is a common misconception that trusts are only for the wealthy. The truth is that those with an average income establish trusts all of the time. If you are considering a trust, ask yourself these three questions.
Do You Have Children Who Need a Limited Inheritance?
This applies to minor children and adult children who may not be financially responsible. With minor children, you may not want them to receive their inheritance all at once or until they are old enough to make financial decisions, as Memphis, TN estate planning lawyers like one from Patterson Bray would advise. You would have a trustee that can overlook the inheritance until the children are old enough to manage money. This could be at the age of 21, 25 or whenever you deem the right age.
In addition to minor children, you can control how much access your adult children have to their inheritance. For instance, if you have a child who struggles with debt or who has a spending problem, you may want to make sure that they cannot waste their inheritance away. A trust can provide rules for how the money is spent and how much the child can have at any one time.
Do You Worry About Your Needs Being Honored?
No one wants to think about the unlikely event that they will be incapacitated. The truth is, however, that it can happen to anyone. You need to prepare for these types of events. If something were to happen to you, do you know that your wishes would be honored? Does your family know your medical wishes? Does your family know what to do with your assets and wealth? A trust will provide your family with a roadmap to your wishes and you can ensure that it will be followed.
Do You Want Your Family to Go Through Probate?
A lot of people want to avoid probate as much as possible. When you don’t have a trust, your assets go through probate. This is a court process that ensures all of your assets are distributed fairly. However, if you do not have a will or a trust, then it is up to the state to decide who inherits your assets. Even if you have a will, the probate process can take months and costs your beneficiaries money.
When it comes to establishing a trust, you do not have to be wealthy. There are a lot of reasons that people use trusts as their estate planning vehicle of choice. To find out more about how to establish a trust, consult with an estate planning lawyer.