Trusts are widely regarded as the ideal estate planning tool, seamlessly transitioning assets from legacy to heir. While many people consider trusts primarily for estate planning later in life, there are compelling reasons to establish a trust sooner rather than later.
What is the Ideal Age?
There is no ideal age to establish a trust. It is a common misconception to wait until later in life. However, significant benefits come with setting up a trust earlier.
Trust packages offer protection against accidents. Trusts and their supporting documents provide a safeguard in case of unforeseen events. In the event of an accident, health and possessions can be managed by the trust and supporting documents, allowing trustees and managers to step in and care for the individual and their assets until recovery.
A trust package can also ensure the care of minor children. The supporting documents, such as a nomination of guardian, provide a legal say in who will take care of children in the event of a parent’s death.
Additionally, placing a first home into a trust can facilitate a smooth transition to heirs, should something happen before old age.
Trusts Are Here to Stay
Once established, a trust remains in existence. Trusts do not expire after a set period. They can continue throughout the grantor’s lifetime and, depending on the trust’s terms, for many years beyond. This longevity provides ongoing benefits and security.
Sooner Rather Than Later
Similar to having insurance, a trust protects against life’s unpredictability. Without a trust, assets can become entangled in probate, a time-consuming and costly process requiring legal representation. A trust can easily avoid probate.
Revocable living trusts are flexible documents. They can be amended, modified, and changed as desired. An experienced estate planning attorney can draft a trust to allow for easy and inexpensive modifications.
Inflation and Legal Costs
Law firms are not immune to inflation. Waiting years to establish a trust may not result in savings. Legal fees and costs have generally trended upwards in recent years . However, many attorneys offer discounts to returning clients, making it easy and cost-effective to modify existing documents.
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