When most people think of an estate plan they think about a will. A will has historically been used as the main document in an estate plan. However, sometimes a trust is by far the best way to distribute your wealth, property, and assets. Here are some reasons to use a trust in your estate plan.
1. A Trust Avoids Probate
A will has to go through probate when it is executed. This means that the court has to oversee its execution. This can take a good deal of time and prolong the process of getting everyone their share of the estate.
With a trust you don't have to go through probate. In fact, the courts don't even have a hand in the execution of a trust. This is all done through your attorney, your bank, and with your family. This can ensure that your family and loved ones get their part of the estate quicker and without complications.
2. A Trust Doesn't Go On Public Record
When you use a will it has to go on public record. You can actually look up any will that has been executed because it must be recorded. For many people this makes them incredibly uncomfortable. The thought of having everyone know their family affairs, their wealth, and where they put all of their money is less than ideal. If you want privacy, you should consider using a trust.
Much like the trust bypassing probate, a trust is not put on public record. This way you can ensure that everything that you choose to do with your money is completely personal.
3. You Have More Control Over A Trust
Lastly, you have a lot more control over a trust than you do a will. In a trust you can put stipulations on the conditions of your beneficiaries getting their money. For example, if you have an education fund for children or grandchildren you can require that they maintain a certain GPA in order to get their money. In addition, you can ask for a drug test to be administered before someone gets their money and so forth. You can also choose how it is distributed. If you don't want it all paid out at once you can request that your loved ones get a certain amount each year.
These are just a few of the many reasons why you should use a trust in your estate plan. For more information, contact a company like Hamilton Michaelson & Hilty LLP.