Some estate planning tools have unique features that can be beneficial in certain situations, such as trusts. These agreements can involve multiple parties, including a settlor who owns the property and a trustee responsible for managing the property. The agreement between these two parties ultimately serves the beneficiary, who receives the property in due time.
Various trust types can be advantageous based on the circumstances. Some have asset management features while the settlor is still alive, while other arrangements only take effect after they pass on. Nevertheless, trusts can address specific estate planning needs, depending on the estate’s size and its owner’s situation, such as the following:
- Wishing to avoid probate after death
- Seeking to execute specific intentions for the estate, such as medical or educational purposes
- Waiting to leave property to underage beneficiaries but intend to give it to them once they reach a specific age
- Keeping estate-related information private
- Saving on costs if the estate’s size could result in excessive probate fees
Trusts can only yield benefits in these situations, considering the estate’s details. Some property types and sizes might retain their value despite undergoing probate. Fortunately, consulting an attorney specializing in estate planning can help determine these possibilities before making a trust.
Weighing estate planning options
There is no such thing as the ultimate estate planning tool. These plans usually require customization based on an individual’s needs and their distinct circumstances. It also applies to trusts that might have costs that outweigh their benefits.
Ideally, individuals should seek professional advice before deciding the components of their estate plan. Doing so can help maximize benefits and address potential causes of disputes later after they pass on.