Many people mistakenly believe that they need to have a lot of money to benefit from a trust. This couldn’t be further from the truth. In fact, many benefits trusts provide don’t have anything to do with how much money someone has. Trusts just make managing assets simpler, and operate a little differently than wills: the probate court ensures that an individual’s will is followed, but the probate court has little to say regarding trust enforcement.
Take a living trust, for instance. Living trusts are created by a Settlor, for the benefit of named Beneficiaries, subject to the oversight of a Trustee. Living trusts are revocable, which generally means they can be amended. This makes living trusts an attractive vehicle to manage beneficiaries: it is quite easy to add/remove beneficiaries with a living trust. Living trusts can also be an attractive asset-management vehicle for families with minor children. Even if a will leaves several assets to a minor child, the probate court will typically withhold those assets until the child turns 18. Assets left to a minor child under a living trust, by contrast, will pass to the child on the trust’s own terms, which could be well before the child turns 18.
Individuals with minor children, or individuals seeking to avoid what can often be a lengthy and expensive probate administration may benefit from a living trust. We are very well-versed in the nuances of these documents and are well-equipped to draft them according to your family’s specific needs. Contact us today if you believe your family might benefit from establishing a living trust.