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What are the benefits of creating a family trust?

On Behalf of | Sep 13, 2021 | Trusts

Florida families might have a lot of questions about estate planning for their families. These questions only amplify with the number of assets that a person has or the number of people in their family.

Without a proper will, the state dictates what happens to all your belongings after you die. Even if you have a will, there could be questions about how to distribute any assets which can cause confusion for your surviving family members.

Why isn’t a will enough of an estate plan?

A will lets the state and your surviving family members know what should happen to your belongings after you’re gone. It allows you to specify what relatives get which items, but there can be problems when it’s not adequately updated.

For example, if you’ve had a life change such as a divorce or new grandchild, there’s a chance that the new family member could be accidentally left out of your will. A last will and testament are also able to be challenged or become caught in probate court.

A trust on the other hand isn’t subject to those same limitations. It gives your family more privacy after you’ve passed, as well as gives you more control over how your assets are given out after you’ve passed.

What are the other benefits of a trust?

A trust is a useful estate planning tool for families with lots of members or for individuals who have a lot of assets. There are also several other reasons that a person would consider starting a trust:

  • Avoiding the probate process
  • Tax-planning
  • Protecting assets from a divorce or creditors

Usually, trusts are used in conjunction with wills for optimal clarity. There are a lot of steps to creating a trust, so families should do their own research to make sure it’s the right option for them.