Providing Peace Of Mind
For You And Your Family

3 assets that make establishing a trust a smart move

On Behalf of | Jan 27, 2025 | Wills And Trusts |

Some people can accomplish their estate planning goals with nothing more than a will. For others, trusts can be an important part of the estate planning process. Establishing and funding a trust can help protect certain assets and control what happens to that property after the trustor dies. Certain types of assets make trusts particularly valuable.

What personal resources might justify the creation of a trust as part of an estate plan?

Businesses and professional practices

Those who own businesses often have a more complex estate planning process ahead of them. They may need to establish a succession plan in addition to a basic estate plan. They may also need to arrange for a competent person to oversee the business so their loved ones can continue to profit from its success. Establishing a business trust can be a way to preserve a business indefinitely without making it the responsibility of beneficiaries.

Real estate holdings

There are multiple reasons why individuals who own real estate may want to use trusts to hold title for the property. Trusts can allow multiple people to enjoy access to a property without having the right to sell it, for example. Trusts can also help protect real property from creditor claims and estate recovery efforts after the owner dies.

Sizable financial investments

Using financial accounts to fund a trust is a common estate planning strategy. Individuals who create trusts can have more control over how their loved ones use the funds left to them. Proper trust terms can prevent tax complications or scenarios in which individuals lose access to important benefits. They can also reduce the risk of people abusing or squandering their inheritance.

Creating and funding a trust can be a smart estate planning strategy in a variety of different situations. Individuals with high-value resources may especially want to consider trusts in addition to wills when creating or updating an estate plan.