Why Set Up a Trust?

Estate planning attorneys often say “Trusts create order out of chaos” because trusts are powerful legal tools that can help families avoid conflict, confusion, and uncertainty after the owner of the assets has passed away. Trusts can provide a clear plan for the distribution of assets, specify who will manage the assets, and how they will be managed.

Here are some reasons why trusts create order out of chaos:

1. Probate Avoidance: Assets held in a trust generally do not go through the probate process, which can be time-consuming, expensive, and often causes family conflicts. By avoiding probate, assets can be distributed more quickly and efficiently, which can help reduce stress and prevent conflicts.
2. Privacy: Trusts are private documents that do not become part of the public record. By contrast, wills and other probate documents are public record, and anyone can access them. Keeping the details of a family’s assets and their distribution plan private can help avoid conflicts and maintain family privacy.
3. Asset Management: A trust can specify who will manage the assets in the trust, how they will be managed, and for how long. This can help ensure that the assets are used for the intended purpose, such as providing for a beneficiary’s education or care, and prevent mismanagement or waste.
4. Special Needs Planning: Trusts can be used to provide for beneficiaries with special needs, by ensuring that their government benefits are not compromised and their care is adequately provided for.
5. Business Succession Planning: Trusts can be used to facilitate the smooth transfer of ownership and management of a family-owned business, ensuring that the business continues to operate without interruption after the owner passes away.

In short, trusts can provide a clear plan for the distribution and management of assets, avoid conflicts, maintain family privacy, and ensure the smooth transfer of family assets and businesses. By doing so, trusts create order out of what could otherwise be chaos. Contact Fillmore Spencer today to schedule a consultation with an Estate Planning expert who can help you consider your unique circumstances and how a personal, family or any other type of trust is a tool that makes sense for you.