When you want to protect your assets from probate after your death, it can be beneficial to set up a trust. A trust offers a higher level of protection than a will and allows your money and assets to go directly to your beneficiaries.
What to consider when setting up a trust
As the trustee, you’ll need to determine how the trust income and assets are distributed. You may want to choose more than one beneficiary because your first choice could pass away, making it necessary to have a second or third beneficiary included.
The document should list your real estate, personal property with a title document and any additional personal property like your household items or coin collection. It can take a few days to several weeks for the trust to be finalized.
Common mistakes to avoid when establishing a trust
When you’re setting up a trust, there are a few common mistakes to avoid to ensure that the document is valid and is recognized by the state. Avoid failing to review the trust regularly, and be sure to update it when you acquire more property or assets. It should be updated and adjusted when you have a new child or acquire a business as well. Get in the habit of reviewing the document every six months to a year. It’s also important to name a successor trustee in your trust to ensure that someone responsible can make decisions if you become incapacitated.
Who can you contact for legal assistance?
If you need assistance establishing a trust, contact an attorney who has experience with estate planning to help you include the necessary details. An attorney may provide you with the required paperwork and guide you through the process of protecting your property.