A Trust is a unique and extremely helpful estate planning tool, and it has been available to families of all shapes and sizes for a very long time. And yet, many clients we work with are hesitant to explore them as a potential solution to meet their ever-changing goals. Perhaps it’s because no one has taken the time to explain all the ins and outs of a Trust. But I think a lot of it is because they’ve been led to believe a variety of long-standing myths about Trusts that simply aren’t true.
Trusts can be confusing, let’s explore and debunk a few of those common myths about Trusts.
Myth #1 — Trusts are only for the super-wealthy
One of the bigger myths about Trusts is that they are only for those with a 12-bedroom mansion on a hill, trillion-dollar Swiss bank accounts (high net worth), and a lengthy list of assets like boats, summer homes, four or five successful corporations, etc. This couldn’t be further from the truth. Trusts are a beneficial estate planning vehicle for everyone, regardless of what position you think you’re in financially. Not to mention, your “estate” may be larger than you think when you factor in life insurance policies, your home, and retirement plans. Furthermore, Trusts provide flexibility in letting you decide what happens to your belongings, whose hands they end up in, and how best to protect your loved ones.
Myth #2 — I already have a Will. Therefore, I don’t need a Trust
While there is definitely some overlap between Wills and Trusts, the bottom line is that they each serve a different purpose, and a Will by itself may not be enough to meet all of your needs. Unlike Wills, which kick in after you die, Trusts can be created and managed during your lifetime and then passed on to a successor trustee. There are also different types of Trusts that can be crafted for specific purposes, and they can help you avoid probate and other tax obligations. When paired together, they can go a long way in helping cover all of your bases.
Have questions about your estate planning needs? Give Caitlyn Ashley Law a call now!
Myth #3 — I lose control with a Trust
When you set up a Trust, you are putting everything you own under the umbrella of the Trust. That can make many people think that they give up control and even ownership of their stuff. This, too, is a myth about Trusts that simply isn’t true. Unless you choose to set up an Irrevocable Trust, most people choose a Revocable Trust instead. This allows you to control all assets held in the Trust during your lifetime. You can add assets, delete assets, and even dissolve the Trust entirely. Read this blog post to learn more about the differences between Irrevocable and Revocable Trusts.
Myth #4 — Trusts don’t avoid probate
This is another half-truth and full-blown myth. Anything that is under the umbrella of your trust avoids probate. If anything is excluded from the Trust, either on purpose or by mistake, it can be subjected to probate. If you call Caitlyn Ashley Law in Denton, TX, you will have an experienced professional helping you establish and properly fund your Trust.
Call Caitlyn Ashley Law today!!
Having a plan for the future is the most important gift you can give yourself and your family. Granted, none of us will ever know for sure what is around every corner in life. And just thinking about the what-ifs — what if I were to die or become incapacitated tomorrow; what if my child with special needs has no one to care for her; what if all my “stuff” isn’t passed onto the right people — can be overwhelming. But having a plan that accounts for your family’s unique circumstances, puts your affairs in order, has concrete solutions to your concerns, lays out your wishes and goals, and protects your family’s future provides peace of mind for the road ahead.
Caitlyn Ashley Law in Denton, Texas, will counsel you on which documents best suit your needs and ensure they are flexible enough to meet your changing needs for years to come.