It is never too early to plan ahead and get things organized in the case of illness or passing, but is a trust the right choice for you? Defined by CNN, "a trust is a legal entity that lets you put conditions on how certain assets are distributed upon your death."
To start, you need to hire an estate attorney. Trying to do this on your own, or using Google to find an 'easy online trust kit' is not the way to go. This could pave the way for legal problems, or even make you a victim of cybercrime. There will need to be a trustee; this would typically be yourself and your spouse. You will need to name a trustee or co-trustee in case of illness or death. If you are concerned whether your heirs will follow your wishes, choose a fiduciary professional to be in charge as trustee. AARP answers some other helpful questions in their article.
The most common type of trust is a revocable living trust. This is set up during a person's lifetime and allows the trustee to retain control of their assets and allows them to revoke or change terms of the trust. One of the benefits of securing a trust is avoiding probate in the situation of the primary trustee's passing. Although each state has different rules, the typical wait time is 6-8 months for a will to go through probate. With a trust, there is no waiting; ownership of the assets simply transfers to the successor trustee.
There are various other types of trusts that can be used in specific situations. Learn more about those here.
If you want to know if a trust is right for you, CNN Money provides a helpful Rule of Thumb:
"If you have a net worth of at least $100,000 and have a substantial amount of assets in real estate, or have very specific instructions on how and when you want your estate to be distributed among your heirs after you die, then a trust could be for you."
Secure Aging wants you to have peace of mind that your estate and wishes will be honored as time passes. We can help make life easier now by tracking monthly income and expenses, as well as fully advocating for our clients' well-being and safety. We are here to help make your life easier and keep your loved ones safe.
