5 Reasons You Definitely Want a Trust
Nov 02, 2023A trust will protect your family in the event of your passing. There are benefits to putting items and assets in a trust.
1. The first one is reducing taxes. It is so great not to worry about paying taxes on something that you inherit. Its no fun if you get something really great then have to pay tax on it. It's kind of like being on a game show then having to pay tax on the prizes you won! It's kind of a buzz kill. You want your family to not have the financial burden of having to pay those taxes so let's reduce them or eliminate them. Put your items in a trust.
2. Also, the assets will go directly to the beneficiaries that you pick and there's no delay. When my in-laws passed away, we needed their van to transport their belongings and we had it right away. It was ours. We didn't have to worry about that.
3. There are costs of probate and these costs are considerable; you lose money right off the top of your estate. The costs scoop up to nearly ten percent right away. You will want to save that money and make sure that your items are in a trust and you won't lose any money to probate costs.
4. The other benefit to having a trust is protection from creditors.
5. The most important benefit that is really, really important is that a trust will protect your family in event of your incapacitation.
Think about this, if you die, your family inherits your stuff, like the POD and TOD accounts, automatically. But what happens if you DON'T die?
What happens if there is a car wreck or some sort of illness or you are in a coma or on life support? You are incapacitated and your family needs your money to pay the medical bills and living expenses, BUT THEY CAN'T HAVE IT IF YOU AREN'T DEAD. POD and TOD accounts only work if you die.
If you are alive and incapacitated, your family cannot get to what they need. Having a trust is really a huge benefit in the event of your incapacitation.
Do you have a trust? They're not as complicated as you might think. Check out my Getting Your Affairs in Order course – we cover trusts and so much more!
