When you work on your Georgia estate plan, you may decide to use different estate planning tools to accomplish different estate planning objectives. While a will is an important component in your estate plan, certain circumstances may warrant the creation of a trust. How does a trust work, and what might you be able to accomplish with one that you could not with a traditional will?
Per Kiplinger, a trust is an estate planning tool that involves you giving someone else who you name trustee power over managing, protecting and distributing the assets inside. Under what circumstances might you want to consider creating a trust?
When you want assets to skip probate
When you place assets into a trust, they do not have to go through probate, which is the legal process involved in proving a will. This may save your beneficiaries time, money and stress. It may also help ensure that they access what you leave them that much faster.
When you want protection from creditors
Once you enter assets into a trust, they become the legal property of your trustee, rather than you. Therefore, if a creditor comes after you or if someone wins a judgment against you, the assets inside remain safe.
When you have concerns about your beneficiaries
You may also want to consider a trust if you have children or other beneficiaries who are spendthrifts or struggling with addiction issues. With a trust, you may be able to dictate that these individuals receive distributions only when certain circumstances come to be.
Not all trusts work in the same manner. The type of trust that might fit your needs the most may depend on the specifics of your situation.