Trusts are not just for the rich, powerful and famous. They can be important estate planning tools for just about any family circumstances.
People in all sorts of situations can benefit from creating a trust, especially those dealing with one of the three family circumstances mentioned below:
A child with an addiction
Few things are harder on a parent than watching a child succumb to serious problems, like an addiction to drugs or alcohol. After watching your child struggle for years, you obviously don’t want to contribute to that problem by leaving them a large inheritance that they could spend on their vices. A trust can allow you to control the use of assets from an inheritance so that those resources won’t help someone drink themselves to death or overdose on drugs.
A family member you want to disinherit
If you want to write someone out of your estate plan, the possibility of them challenging your wishes increases. Using your biggest assets to fund a trust will make it harder for an unhappy family member to try to fight back after you disinherit them. Challenges against a trust are generally harder to bring, and trusts will help ensure that family members don’t circumvent your wishes.
A loved one with special needs
A child, grandchild or even a sibling with special needs could benefit from financial resources. However, a big inheritance might cut them off from state benefits. Adding a special needs trust to your estate plan can help you provide for a vulnerable loved one without limiting their access to important resources like Medicaid.
Thinking about your family issues and the property you want to leave behind can help you decide if adding a trust to your estate plan is the best move for your family.