TRUSTS
NOT JUST FOR THE WEALTHY
A majority of people think that estate planning documents, such as trusts, are only for high-wealth individuals or families. As such, they might not often think about creating a trust, but there are still several reasons why having one could be beneficial, even on a smaller scale. Here are a few:
- Asset Protection: A trust can help protect personal assets from creditors or other legal claims. This can be especially important if the individual faces financial hardship or legal challenges.
- Medicaid Planning: For individuals who are aging or facing significant health issues, a trust can be used to help protect assets while qualifying for Medicaid or other public assistance programs.
- Avoiding Probate: When someone passes away, their estate typically goes through probate, which can be a long and expensive process. A trust can help bypass this, allowing for a smoother transfer of assets to heirs or beneficiaries.
- Ensuring Financial Support for Dependents: Even if someone has limited assets, they may want to ensure that dependents (like children, aging parents, or a spouse) are taken care of if something happens to them. A trust can specify how assets are distributed and ensure that those dependents are supported, even if the person has little wealth.
- Control Over Distribution: With a Trust, an individual can specify exactly how and when their assets are distributed, which can be helpful if they have specific wishes, such as a gradual distribution to avoid making beneficiaries too wealthy too quickly.
- Increased Financial Stability: For individuals with a modest income but some assets (e.g., a small home, life insurance policy, or savings), a trust can offer a way to manage and preserve wealth for the future, helping ensure that they leave something behind for loved ones.
Ultimately, a Trust can provide peace of mind for individuals, regardless of income, knowing their wishes will be honored and their assets protected. Our Estate Planning experts at Saunders, Walsh & Beard look forward to discussing this with you. To see what type of Trust would be best for your situation, give us a call today.
