When it comes to creating a full estate plan, one of your questions is likely whether or not you need a trust. The answer is often yes, and that may surprise you.
Many people think of trusts as something for only the very wealthy, but the truth is even those with a more moderate net worth should consider having a trust. If you own real estate and other assets, it’s even more important to consider a trust.
A trust can also give you more control over your assets. If you have very specific wishes regarding the distribution of assets or are concerned about taxes, a trust can help protect you and ensure everything is distributed the way you want.
Types of trusts
There are a range of different trusts to choose from, which is why working with an attorney is so important.
Types of trusts include:
- Irrevocable trust
- Revocable trust
- Charitable trust
- Asset protection trust
- Constructive trust
- Tax by-pass trust
These are just a few of the common trusts you may want to consider. It is important to understand the differences and work with an experienced lawyer who can help you determine what is best for your needs.
Remember, trusts are not just for the wealthiest individuals. According to CNN Money, anyone with a net worth of $100,000 should consider a trust. That is far from the only consideration, but it is something to keep in mind as you begin to explore your options. And remember, if you are on the fence, it can’t hurt to learn more.