You may be among the many Massachusetts residents who wonder what estate planning tools will work best for your plan. It may seem like a blessing and a curse to have so many planning options. On one hand, you can ensure that you find the best options for expressing your end-of-life wishes, but on the other hand, you may feel overwhelmed by the various tools available.
One tool in particular that often gives individuals pause is a trust. You may immediately think that you do not need a trust because this tool is only for the wealthy, but you would be mistaken. Trusts come in various types and can be helpful to people for a number of reasons, regardless of income level.
Is a trust right for you?
Still, you may be on the fence as to whether a trust is something you should utilize in your estate plan. To help yourself decide, you may want to answer the following questions:
- Do you have a loved one with an addiction?
- Do you have a loved one with special needs?
- Do you have children and have gotten divorced?
- Have you adopted children?
- Do you have a beloved pet?
- Do you own a business?
If you answered yes to any of these questions, you could benefit from creating a trust. A trust gives you control over your assets even after your passing, and you can designate assets for a specific use. For example, if you have a loved one with an addiction, you may worry that he or she would use money bequeathed in a will to purchase more drugs. With a trust, you can indicate that the funds can only be used for specific purposes or can only be obtained after receiving treatment.
Control and protection
As mentioned, a trust can give you continued control over your assets even after your passing. However, it can also provide protection for assets and for your loved ones. If you have adopted children and want to make sure that they receive their intended inheritance, placing assets into a trust can better ensure that they do.
The uses of a trust are far reaching, and before you simply think that you cannot use one, you may want to gain more information on how a trust or multiple trusts could fit into your estate plan. Discussing this topic with an estate planning attorney may help you decide.