While you are preparing for or undergoing your estate planning process, one of the most common things you will encounter is the option to create a trust. Estate planning is no longer for the elite. So long that you have at least $100,000 as your net worth, it is a good idea to go ahead and set up your trust. There are several factors that you should think about when you are considering estate planning.
Planning your Estate
First, you need to figure out exactly what you have, who you want to leave it to, and how you want to leave your estate to them, in whole or parts. After you have evaluated exactly what you have in accounts and property, such as real estate, it is then time to assign who inherits what. You may want to leave it all to your surviving spouse, to your children, or divide it and leave it to both your spouse and your children. The next step to estate planning is determining how you want your trust disbursed. You have the option of disbursing your trust all at once or you may decide to distribute it over years.
Now that you know how to plan your estate, let’s talk about the benefits of creating a trust. A trust will let you decide on when and how you disperse your assets. Choosing the amount and the timing of how your estate is disbursed may give you a sense of comfort. A trust can also be helpful if there could be a potential battle over your estate. Keeping your affairs out of the court system is another reason why many people choose to create a trust.
Choosing a trustee is important to many people during the estate planning process because you are leaving someone who you feel is best to manage your trust. Choosing a trustee will allow your estate to goes as planned by letting your trustee know exactly how you feel and the steps you want taken to protect your assets. By creating a trust you are still left in control of your assets, even after you pass. To be certain your trust has been setup correctly, you should always consult with an experienced estate planning attorney.