When you’re putting together your estate plan, one thing to do is to consider adding in a personalized trust. A personalized trust is one that considers your specific assets as well as the circumstances that may influence your estate, heirs and more.
There are plenty of places online that claim that you can make a trust on your own. These DIY websites do offer some basic trust information, but it’s better not to use them. These are simple, basic forms that aren’t personalized to your situation. As a result, you could end up setting up the wrong kind of trust or miss using a trust that would be more beneficial to your estate overall.
Know why you want a trust, then personalize it
There are dozens of reasons why you may want to establish a trust, so it’s important to identify the main reasons. By doing this, your attorney will be able to talk to you about some of the different types of trusts and how they could be beneficial to you.
Some common reasons to establish trusts include:
- Needing somewhere to hold the benefits from a life insurance policy after it pays out
- Wanting to set aside premarital assets
- To manage unique assets
- To provide a structured income to a surviving spouse
- To minimize the value of the estate for Medicaid-planning purposes
- To protect assets from collectors
Remember, there are different kinds of trusts, so selecting the right kind is essential. There may be trusts you’ll want to use for pets, taxes, children with special needs and other circumstances.
Choose an irrevocable or revocable trust when you’re ready
You have to primary options for trusts, irrevocable trusts and revocable trusts. The difference between them is that you cannot change the irrevocable trust once you set it up. It is the most protective trust option, but if you want to be able to access your assets, then opting for a revocable trust may make more sense. Your attorney can talk to you more about the options you have when setting up a trust, so that you can make the right decision for your beneficiaries, self and estate.