Many people have heard of trusts but don’t really know what they are or who needs one.
In a nutshell, a trust is a fiduciary relationship where the creator or trustor gives another party, the trustee, the right to own and manage assets for the benefit of a third party, the beneficiary.
You create the rules on how the trust will operate and when the beneficiary can have access to the assets held in the trust. You can even appoint yourself as the trustee and have multiple beneficiaries, such as family members or charities.
If a trust is revocable, you can change the rules at any time. But if it’s irrevocable, you can’t. I know, it’s a complex topic.
If you answer “yes” to any of the following questions, creating a trust may be right for your situation:
- Do you have a family member with a disability who may need future financial help after your death?
- Do you have heirs who you believe would not manage an inheritance responsibly?
- Do you have children and believe that your spouse would remarry after your death?
- Do you want to be sure that your assets go directly to your heirs right away and avoid the public probate process?
- Would you like a charity or grandchildren to receive your assets once you’re gone?
To help break down the topic of trusts with simple language and examples, I interviewed Jules Haas, a New York attorney with more than 30 years of experience in matters that include trusts, estate planning, estate litigation, probate, guardianship, and real estate.
[Listen to the interview using the audio player in the upper right sidebar of this page or on iTunes, SoundCloud, Stitcher, and Spotify]
Even though thinking about death and what may happen to your loved-ones after you’re gone is a heavy issue, I think you’ll take away some important information from our conversation. We cover:
- The difference between a will and a trust—and are they just for wealthy people?
- Common estate planning mistakes you should avoid
- Special considerations for couples who are not married
- Types of trusts that average people benefit from the most
- Key legal documents that every adult should have and whether you can use templates
- When an account beneficiary supersedes information in a will
- How to find a great estate planning attorney
The bottom line is that you owe it to your significant other, spouse, children, and any other close family members to have your legal affairs in order. It might be one of the best gifts you can leave behind.
The bottom line is that you owe it to your significant other, spouse, children, and any other close family members to have your legal affairs in order. It might be one of the best gifts you can leave behind.
But if you haven’t made necessary arrangements, your death could be a major financial burden on your family. I hope this expert interview will be a wake-up call to everyone who doesn’t have a will or other critical documents that we discuss.
I know it takes time and money to set up these documents. But once it’s done, it’s done! You’ll have so much peace of mind that you’re finally protecting yourself and your family the right way.
If you haven't already set up necessary legal documents, I challenge you not to let another month go by without getting your affairs in order!
See also: How to Find the Best Financial Advisor or Expert
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