Estate planning is something that everyone in Maryland should be interested in. No matter how much or how little you own, having a plan for what to do in the event of your death or disability is crucial. It can give your family peace of mind and help them avoid a lengthy proceeding in court. Most people know about key estate planning documents like wills and powers of attorney, but it’s also important to know about the advantages of family trusts.
Why to use a family trust
Trusts are structured so that three parties are involved. First, there’s the trustor, who contributes assets. The trustee is a third party who manages them, and the beneficiaries are the ones who receive proceeds from the instrument. Trusts are very useful when it comes to estate planning.
A family trust makes it possible to be certain that your family will receive your assets as intended. Using trusts can also streamline the process of passing wealth onto the next generation because using a family trust makes it possible to avoid probate court upon the death of the trustor. This means that there are fewer delays in your loved ones receiving your assets. That can be particularly important at a sensitive time.
The importance of working with professionals
Setting up a family trust means working out many details. For example, family trusts can be revocable or irrevocable, and it’s important to know the advantages and disadvantages of each. Working with a financial planner and an attorney may help you establish a trust that does what you want it to do. There is some cost upfront when creating the trust, but in the long run, using a family trust can help you avoid wasted time and money.