Trusts are common, but there are numerous variations, and there is still considerable confusion about what is legal and what is not. There are at least two primary types. One type is a common to estate planning, and probably just about everyone should have one. You don’t want to die without a will, and but do you need a trust too? Most people regardless of their financial wherewithal should not need to admit a will to probate. Probate is public, takes a long time, and is expensive. But there is a simple way to keep it private and avoid the time and expense of probate.
For very little money (some people even do it themselves) you can create a revocable trust that calls for the disposition of your assets. You still write a will, but the will just says that everything you own goes via the revocable trust. It’s called a pour-over-will, since it pours all assets into the trust. The trust is private, is not separately taxable, and you can change your trust anytime you want. For example, you can add or delete beneficiaries over time, to make sure that the people inheriting your assets are the ones you want.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.