Estate planning ensures who will care for any younger children and that they will have access to whatever financial resources are available. A trust is effective as soon as it is created, which allows for a trustee to manage your affairs before and after death. For families who have accrued substantial wealth, having a trust in place is especially important. Families with wealth need a trust to protect their assets, avoid probate, and handle matters privately.
Protect Your Assets
Families with wealth need a trust to protect their assets from any potential threat. A trust ensures your children or beneficiary will receive their allocated funds by protecting them from future divorce, bankruptcy, creditors, predators, and judgments. It can also provide protection against certain creditors, like Medicaid. A trust provides you with peace of mind that your beneficiary will have access to their inheritance, even after you pass. You also can include instructions for the distribution of the trust, so your children are not receiving large sums of money at once.
Avoid Probate
Another important reason why families with wealth need a trust, is to avoid probate. In the event of your death, a trust can be passed outside of probate court which saves a considerable amount of time and money. Without having a trust in place, the probate process can take up to one year to transfer assets to heirs. This process also has several expenses involved, such as probate fees, attorneys’ fees, and appraisal fees.
Privacy
Families with wealth need a trust to ensure their affairs are not on public record. A trust is private, which is a great benefit to those who want to handle their financial matters discreetly. For many families, a will is not adequate for meeting the needs of them and their families because all assets are appraised and reported to the court. However, because a trust is private, families can be protected from people who may the opportunity to take advantage of children who have inherited large sums of money.
If you want to ensure your beneficiary will have access to their inheritance, seek out the Maryland Attorneys at Frame and Frame. We have been serving the legal needs of our community for over 70 years and can ease your worries and take the weight off your shoulders.