Trusts are rapidly replacing wills as the main form of testamentary estate planning. You do not need to be a millionaire for using a trust to make sense. In terms of deciding who gets what when you have passed away, a trust can do everything a will can do while also allowing for some discretion and more gradual distribution. There are a number of benefits trusts offer that wills cannot. Unless you have minor children, you may not need a will at all if you establish a trust. There are also numerous different types of trusts that all offer distinct advantages and disadvantages. An attorney can help you understand all your options so that you can make a well-informed decision.
Advantages of Using a Trust, Not a Will
Some of the benefits that have people turning to trusts as their primary testamentary document include:
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Gradual distributions - When you use a will, your beneficiaries get whatever gifts you have left for them in their entirety immediately. Depending on your beneficiaries and how they are with financial management, this could be a recipe for disaster. With a trust, you can have money slowly distributed to them over time instead of handing them a lump sum.
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