What Is a Trust?
A trust is similar to a corporation in that it is a legal establishment that can own things and act in place of a person. However, a trust is far less complicated than a corporation. You can set up a trust without any court supervision, without any license, and without public notice. Of course, there are some legal requirements, and your attorney can guide you with that. However, the advantages of having a trust are numerous and can often outweigh the cost.
Do You Need a Trust?
Often, the answer is yes. A trust is a legal entity which is set up to own things, like a corporation does. The trust can own your financial assets, your home, your car, and almost anything that a person can own.
The trust is absolutely safe and secure; the main advantage being that it outlives you. When you pass away, the terms that you have provided in the trust will govern how your property is managed and distributed. Property held in your trust is not considered probate property, and thus does not have to go through the formalities of the probate process. This can be a huge relief for your heirs.
It is important for couples with children to consider setting up a trust. The trust can exist for a long time, for instance, to provide for a young person who may not be ready to take on large financial responsibilities. Your attorney must be very knowledgeable of the legal requirements, but your end of the preparation is not complicated. You approve and execute a few pages of instructions and understandings, and then you are all set. There is no need for court approval. The advantages of a trust can be numerous. Talk to your attorney about whether you would benefit.