Once you decide it’s time to start your estate planning, you have many options to consider. For example, you may discover you need more than a simple will to meet your and your family’s needs. You probably know you can add a trust to your estate plan, but did you know you can have more than one?
People use multiple trusts for different reasons, but for many, just one is all they may ever need. However, in situations like the scenarios discussed below, creating multiple trusts may offer more and better overall protection.
You own complex assets
Those with complex assets like patents often choose to protect and manage them in a separate trust. Unlike a will, a trust can allow you to tailor its provisions to address concerns or needs specific to the individual asset. Other complex assets include:
- Copyrights
- Mineral rights
- Business shares
- Private company stock
- Real estate in multiple jurisdictions
A will is not typically detailed enough to preserve these potentially valuable yet unique assets.
You have a child with special needs
You can continue providing for and protecting your special needs child or close relative with a trust. The right language and provisions can help ensure that they enjoy your continued support without compromising their eligibility for government benefit programs like Medicaid. Knowing they will be cared for even after you are gone can give you tremendous peace of mind.
These are just two reasons multiple trusts may be necessary for your estate plan. Remember to check regularly for changes in Virginia laws to help ensure that your plan is legally sound and functions per your intentions.