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Pros and cons of trust



If you want to help ensure that your loved ones have as much financial security as possible after you die, you need some important real estate planning tools in place – a life insurance policy (of course), a final will and will, and, in some cases, a trust.

If you're a qualified Haven Term policyholder, creating a trust is easier than ever thanks to Trust & Will, a service offered by Haven Life Plus Rider. Trust & Will is a simple, affordable property planning service where eligible Haven Life customers can create a free individual or joint trust using Trust & Will's easy-to-use online interface.

"A trust is a legal tool that provides a set of benefits to property planning" , explains Patrick Hicks, head of law at Trust & Will. "A typical living trust will handle most of the most common needs in real estate planning."

Does this mean that everyone should create a trust? Not necessarily. ̵

1; and the disadvantages of building trust – and although the pros outweigh the cons in most cases, it's worth understanding exactly what you're getting into before you begin.

The pros and cons of building trust [19659006] Here's a quick overview of the pros and cons of building trust, courtesy of Trust & Wills Patrick Hicks:

Pros

Cons [19659008] Trust takes time to create, whether you work with a lawyer or use an online service such as Trust & Will. Much of the time comes from deciding what type of trust to create and how to allocate your assets.
  • If you have a relatively small property, the benefits of trust can be minimal. Creating a trust to avoid property taxes, for example, is less useful if your property is unlikely to be taxed.
  • A revocable living trust is not only a useful property planning tool, but it also gives you the ability to audit your trust. while you're still alive – that's what "revocable" means, after all. An irrevocable trust can only be revised after receiving permission from the donor's named beneficiaries. When considering the pros and cons of building trust, consider the important difference.

    How Trust Can Benefit Your Loved Ones

    One of the biggest benefits of building trust has to do with benefits that it can offer – not only for you and your property, but also for the people you care about the most. Whether you use a trust as a property planning tool that makes it possible to avoid estate registration or as a way to preserve Medicaid eligibility for a loved one with special needs, a good trust allows you to be the trustee – literally – of your own assets.

    Trust can also help you and your loved ones solve problems related to income tax, property tax, real estate, estate planning, small business planning and more. Creating a fund can, for example, help ensure that your heirs have access to financial resources when they need them most. Creating a charity fund or a charity fund can help you donate some of your assets to a good cause while deferring or avoiding capital gains tax.

    "There are times when a foundation is the only reasonable solution," says Hicks. "People with high net worth can see that a trust allows tax planning techniques that would not otherwise be possible. Parents of children with special needs can see that some foundations retain the right to state support in ways that would not be possible without a foundation. Parents of young children experience that trust gives more control over how children inherit than any other mechanism. ”

    Is trust right for you?

    Now that you understand the pros and cons of trust, it's time to ask yourself Hicks suggests that you start the process by asking yourself if a trust can help you achieve a long-term financial goal.

    “When evaluating whether a trust is appropriate, it's probably best to start in identifying what needs you want to address – avoiding estate registration, planning for incapacity for work, handling young children, etc. ", explains Hicks." When you know the issues that are important for d you can then decide if a trust is the right solution to your problems or if your planning would be more efficient without adding a trust. "

    If a trust seems to be the right option, do not procrastinate – especially if you decides to create a revocable trust. The advantages and disadvantages of a living trust are quite simple. On the plus side, a revocable life trust gives you full control over your assets while you live while helping your loved ones avoid costly estate registration costs after your death. On the downside, yes – you have to set aside time to build trust, which includes deciding how you want to distribute your assets after you die.

    Fortunately, a revocable living trust can be revised as often as you like. This means that all the decisions you make today can be adjusted when your circumstances change – a new house, a new child, an unexpected divorce or a widow. That's why a revocable life trust is such a popular choice, and why it's a good idea to ask yourself if it's time to start the trust building process.

    “If you decide that a trust is right for you, it is time to establish a revocable trust is now says Hicks. "Assets in a revocable trust are fully available and remain your assets, so there is no loss of control or access to your property."

    The pros and cons of a trust are quite easy to evaluate, which means everything you need is to determine if a trust can help you manage your assets. If the benefits of building trust outweigh the disadvantages, set aside time to build your trust – and trust that you will take another step to provide long-term financial security for the people you care about most.


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