By Richard Cunningham
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03 Apr, 2023
As a property owner, you may have already considered how you want your assets distributed after your passing. Many people believe that simply outlining their wishes in a will is enough to ensure their properties and investments are transferred to their desired beneficiaries. However, there is another option that can provide greater protection and peace of mind for property owners: placing assets in a trust. A trust is a legal arrangement where the owner transfers their assets to a trustee, who then manages them for the benefit of the beneficiaries. There are several benefits to putting your home or investments in a trust instead of just outlining your wishes in a will. First, a trust can offer greater control over your assets. When you create a trust, you can dictate how your assets are managed and distributed. For example, you may choose to only distribute funds to beneficiaries under certain conditions, such as upon reaching a certain age or achieving a specific goal. This level of control is not possible with a will, which only outlines your wishes for the distribution of your assets. Additionally, a trust can provide greater privacy for your beneficiaries. When a will goes through probate, it becomes public record, which means that anyone can access information about your assets and how they were distributed. A trust, on the other hand, does not go through probate, which means that your beneficiaries can receive their inheritance privately and without outside scrutiny. Another benefit of a trust is that it can help protect your assets from creditors and legal challenges. Once assets are placed in a trust, they are no longer considered part of your estate. This means that they are not subject to claims from creditors or legal challenges from disgruntled family members. Finally, a trust can provide greater flexibility for your beneficiaries. If you have multiple beneficiaries, a trust can be set up to distribute your assets in a way that best meets their individual needs. For example, you may choose to distribute your assets to one beneficiary immediately, while holding funds for another beneficiary until they reach a certain age. In conclusion, while a will is a necessary component of any estate plan, placing your assets in a trust can offer greater protection, privacy, control, and flexibility for property owners. If you are a property owner, it is important to consult with an experienced attorney to determine if a trust is right for you and your beneficiaries.