Hashing out a comprehensive and effective estate plan is achievable if you consider the totality of the situation. Asking yourself some simple questions can help you determine what tools will prove more effective, including trust accounts.
Consider these questions and whether a trust may aid in creating a solid estate plan.
What is your family’s financial situation?
Finances change over the course of a lifetime. When you create your estate plan, however, you need to consider what would happen if you died in the immediate future. Doing this can help you focus on caring for those you love with the current financial picture.
What planning tools should you consider?
If your family relies on you for financial support, you have a few options to care for them. Joint bank accounts allow the survivor to assume those assets and access the cash after your death to help pay bills, including funeral expenses. However, if you are looking for a longer-term fiduciary tool that can grow as your financial worth does, you may want to look at a trust.
What can a trust do for your estate plan?
A trust acts as a depository for property and assets. The purpose of a trust is to take something out of your name and put it into the trust for the benefit of whoever you appoint. Upon your death, the trust will pass to those named without going through probate. A trust saves you money during your lifetime by removing assets from your net worth, and it benefits your family upon your death by circumventing a lengthy court process.
If you are still unsure about how a trust works, ask someone with experience creating one as part of an estate plan.