Trusts Can Help Your Legacy Live On

Trusts Can Help Your Legacy Live On

Discussing death is never a pleasant aspect of financial planning, but it’s certainly one of the most important. While no one likes to discuss his or her own mortality, many of us wonder how we’ll be remembered. Perhaps you want your legacy to live on through the work of a charity, or maybe you’d rather bypass the probate that is associated with a will. Whatever the reason, a trust may be an option for you to consider.

Trusts, simply put, are a way for you to transfer your assets and property into one legal entity. One of the biggest benefits to a trust is that when properly established, you can avoid probate court and legal costs associated with a will. A trust gives you greater protection than a will against legal action from anyone who is unhappy with the distribution of assets and decides to challenge it. Also, a will is a matter of public record, while a trust, when established properly, is not.

There are many important uses of trusts. Trusts can minimize possible conflict between heirs when an estate is being settled; set out in detail how assets are distributed to beneficiaries; who inherits property, as well as who has the right to use it and under what conditions; and how and when money is disbursed for children or grandchildren’s educational expenses. A charitable trust is a popular way to transfer assets such as money, real estate or art to a charitable trust, and designate that they eventually be given to a specific organization. Trusts can also help you manage your affairs if you become unable to do so. Many people set up trusts to prepare for the possibility that they may become disabled or ill before their death, and thus unable to manage their assets properly.

Aside from a will, trusts provide additional options for making certain that your legacy lives on. Trusts can help you manage your property and assets and can make sure they are distributed after your death according to your wishes. We can work with you and your estate planning attorney to create a comprehensive financial plan that addresses your specific needs. Call your financial advisors office today to schedule an appointment.

FINANCIAL FACTS

Impact Of Low Inflation? — Inflation (as measured by the Consumer Price Index) advanced by 1.51 percent on a year-over-over basis as of March 31, 2014. There has been only five calendar years in the past 50 years (1964-2013) when the rate of inflation was lower than 1.51 percent (source: Department of Labor, BTN Research). 

Can’t Live That Long — Fifty-six percent of more than 1,500 Americans at least age 25 believe that they are not on a financial track that would allow them to live a comfortable lifestyle through age 85 (source: Northwestern Mutual Planning and Progress Study, BTN Research). 

Banking Business — There has not been a bank failure in the U.S. since Feb. 28, 2014, a stretch of 52 days as of April 21, 2014. Only five banks have failed YTD. On July 20, 2012, five U.S. banks failed in a single day (source: Federal Deposit Insurance Corporation, BTN Research).