There are many ways to set your estate up for your heirs and beneficiaries. Though many people choose to establish a will, this simple document may not be the right fit for everyone. Establishing a trust as part of your estate plan can be a great option, but there are many misconceptions that Valencia estate planning attorneys hear, which can make trusts seem like more of a hassle than a beneficial tool. Let’s take a look at some of the common misconceptions and myths surrounding trusts so you can make the best decision for your estate.
Trusts Are Too Expensive
Creating a will is a very low-cost way to make sure your estate and assets are divided the way you want them to be, and this can make setting up and maintaining a trust seem expensive by comparison. Though trusts do cost more to establish and maintain, they’re far from expensive, especially if you’re a high-earning individual or have a high net worth due to your investments and savings.
Remember, your estate will have to go through probate if you use a traditional will to divide your assets. The probate process can cost several thousands of dollars, even on smaller estates. With a trust, your beneficiaries will be able to avoid probate and may end up saving money.
Trusts Are Only Meant for the Ultra-Wealthy
Though many high-income or wealthy individuals use trusts as their primary estate planning tool, that doesn’t mean they’re out of reach for others. Trusts allow you to set aside money for specific purposes, not just avoid probate. For example, you can establish a trust to help cover higher education costs for your children or grandchildren. If you’re passionate about a specific charity or cause, you can establish a trust to make contributions to your preferred organizations after your death. This makes them ideal even for estates that aren’t worth millions of dollars.
Trusts Are Incredibly Complicated
Setting up a will can be straightforward. You outline your wishes and write them down so they’re enforceable. By comparison, trusts can seem incredibly complicated, and while there is more legwork involved in establishing a trust and ongoing work to maintain it, they’re not as complicated as you might think. As long as you work with an experienced estate planning attorney in Valencia, you’ll be able to avoid confusion and establish a trust that works for your goals.
Trusts Force You to Relinquish Control of Your Assets
With a will, you’re in complete control over your assets until you pass away or are unable to make decisions on your own. With a trust, there’s an expectation that once your assets are in the trust, you’re no longer in control of them. This can be true if you set up an irrevocable trust in which you’re unable to change the trust or end it once it’s set up. However, this isn’t true if you set up a revocable trust. With a revocable trust, you can make changes whenever you see fit and are still in control of your assets.
Is a Trust for You?
Deciding if a will or a trust is the right option for your estate plan can be a complicated process. That’s why it’s essential to work with an experienced estate planning attorney in Valencia as soon as you’re ready to establish an estate plan.
Ready to get started? Contact Jackman Law today to schedule a free consultation.