When you put together your estate, you may originally think you do not need a trust. This is one thing we often hear from our estate planning clients, and it stems from the many myths that surround trusts.
Depending on the nature of your estate plan, we may recommend setting up a trust. But first, we want to debunk some of the common myths we hear about trusts:
- Only the wealthy need trusts — One of the most common myths we hear is that only the wealthy use trusts. Although trusts are a valuable tool for high-net-worth individuals, even those with more modest estates can benefit from putting together a trust. Trusts can help with everything from managing assets to providing for loved ones.
- Trusts are complicated and costly — Although some trusts have complex requirements, others are relatively simple and straightforward. How much it costs to create and administer a trust can vary, but the total cost does not always have to be significant.
- Trusts are only for avoiding taxes — Trusts can offer tax benefits, but they often serve purposes beyond tax planning. One big reason many people decide to put together a trust is to ensure assets are distributed according to their wishes.
- Trusts are irrevocable — Some trusts are irrevocable, but many, like revocable living trusts, can be revoked during your lifetime. When you create a trust, it is essential to understand the specific terms and characteristics of the trust you create.
If you have questions about trusts or are interested in adding a trust to your estate planning documents, we encourage you to reach out to our team to learn more.