Here’s what you need to know about the benefits of trusts.
Today, we’re delving into a crucial topic that, when handled correctly, can prevent a cascade of heartaches, problems, and financial challenges in the future. That topic is placing your residence in a trust. Today, I’ll focus on the three key advantages that I’ve observed when individuals establish a trust for their residence. While there are many other benefits, I’ll highlight these three:
1. Avoiding probate. A trust for your real estate holdings bypasses the probate process. Let me illustrate with an example. Suppose Mr. Smith owns a house and has a will. Sounds good, right? However, if Mr. Smith were to pass away, and his son Joey claims, “I should be the one in charge because Dad left the house to me,” a significant issue arises if the house isn’t in a trust. Despite the existence of a will, probate proceedings would be necessary. By having the property in a trust, you can prevent this complication.
2. Decision-makers. Trusts empower you to designate decision-makers for your assets. For instance, Mr. Smith can appoint Joey as the trustee, giving him the authority to manage the property when Mr. Smith is no longer around. Additionally, Mr. Smith can stipulate that his daughter Annie becomes the successor trustee in case Joey is unable or unwilling to fulfill the role. You can even set specific rules, such as requiring both trustees to agree on decisions or allowing one to act independently.
3. Peace of mind. Having a trust in place offers peace of mind. It eliminates uncertainties and potential disputes within families or among associates when a loved one passes away. You’ll know precisely how things will unfold, and it eases the burden on those left behind during a challenging time.
While there are more advantages to trusts, these three are among the most compelling. Trusts are not prohibitively expensive to establish, especially when you consider the potential savings and benefits they provide. If you have questions about this topic or anything else, please call or email me.
