Over the years, many of us – especially in the legal profession – have heard stories about how people unwittingly gave up control of what they had spent a lifetime struggling to earn.
When people don’t really understand what a will or trust can do – or not do – they run the risk of making the mistake(s) of a lifetime. And of leaving their heirs with nothing. So, not only is it vital that you create an effective estate plan…it’s vital that you understand it!
A will, of course, is used to direct who will receive what after we’re gone. And, for some people, it may be all that’s needed. For others, though, an effective estate plan might require a trust.
A will distributes your assets. However, it does not afford you control over how they’re used after you’re gone. Also, it doesn’t afford you control over how they’re used if you’re still alive but incapacitated. To maintain that type of control…you need a trust.
A trust gives you some control over how your wishes/desires are achieved. To some people, it represents a feeling of security…and the comfort of knowing that their wishes will be respected, whether or not they’re here to ensure it.
Basically, you are the one in control of the trust. And – as strange as this sounds – you can control it even after you’re no longer here.
In a trust, you designate a (“trust”-worthy!) friend, relative, etc. to ensure that your wishes are carried out even after you’re gone. Your “trustee” will have explicit instructions from you, so there’ll be no ambiguity about what you wanted.
Is a trust for you? Well, there are a lot of factors to consider. It depends, to a great extent, on what you want, what you have, who you want to give the things you have…and many other variables.
Really, there’s only one person qualified to advise you on your potential benefits (or not) from a trust – an Elder Law attorney.
So, before you sign on the dotted line…see one!
