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3 reasons why a trust is useful when you plan your estate

On Behalf of | Mar 19, 2021 | Estate Planning |

Your estate plan can include many different kinds of documents. A last will is the most common, but it is far from the only legal tool that can help you.

Trusts are some of the most useful and customizable documents available for estate planning, yet many people don’t pursue them because they think of them as complicated or expensive. While a trust does take consideration and effort to create, its long-term benefits will usually massively outweigh the short-term difficulty and expense involved in creating one.

Every person planning their estate has unique goals and needs. Still, there are certain benefits of a trust that will appeal to the vast majority of those trying to prepare for their future and plan their legacy.

Trusts can help you qualify for Medicaid when you get older

Maybe Alzheimer’s disease runs in your family, or perhaps you just want to cover all possible outcomes of advanced age. Many people find that Medicare doesn’t cover their costs when they get older because it will not pay for nursing home care or skilled help in your home.

Medicaid may cover those costs, but you have to qualify first. Creating a trust now can help ensure that if you do need Medicaid, you won’t have to pay a penalty or get rid of all of your property to get those benefits.

Trusts can help resolve concerns about family conflict

Are you worried that your children will be at each other’s throats during estate administration or that one member of your family will try to challenge your wishes in the hope of a bigger inheritance?

Whether you worry about a single person in your family or the impact of estate administration on the relationships of the people you leave behind, a trust eliminates many reasons people would have to challenge a last will.

Trusts let you control what people do with the legacy you leave behind

If you have family members with unhealthy habits, leaving a large inheritance might mean that they waste resources you spent a lifetime acquiring. Once someone receives an inheritance in a standard last will, the estate no longer has any authority over what they do with those assets. However, if you create a trust, you can limit how much people can use and even what they can use those assets for.

Other people may find that trusts are useful because they eliminate tax risks or make it harder for creditors to bring a claim against their estate. Considering the benefits of a trust might help you realize that a trust is the ideal tool for your needs and estate plan.