PRIVACY and PROTECTION: 2 good enough reasons to create a trust

You don’t need a trust just for the tax benefits. There are other reasons, such a probate avoidance/privacy and protecting young beneficiaries.  Probate is a formal process where a decedent’s property is administered and distributed.  Probate is public and there is no privacy. Additionally, there are unneeded expenses. While avoiding probate is important, asset protection is more important.  In probate, assets could pass to young individuals who may be over 18, but not able to handle assets and the responsibilities of an inheritance.

A trust can be drafted to protect the individual many years beyond 18 years of age, and still allow the beneficiary to receive distributions for health, maintenance, and education, but still protect the assets held in the trust. There are so many more reasons to use trusts for one’s estate plan, but PRIVACY and PROTECTION are enough to allow one to take note of their importance.