It is a common misconception that a trust is only useful for the wealthy. While this tool does deal with the transfer of assets and wealth, a trust can be an essential component of estate planning for anyone.
There are many types of trusts that are accessible to many and can contribute greatly to a Delaware resident’s estate plan.
What can a trust do for you?
A trust is a very diverse tool that can adapt well to your needs. Trusts can help you:
- Transfer assets: The primary function of the trust is to help you pass on wealth, property and other assets to your loved ones. Furthermore, unlike a will, trusts do not go through probate court. This means you can distribute assets more privately and avoid the disadvantages of probate such as long delays.
- Take care of your loved ones: If someone you love has a disability or health condition that requires constant care and maintenance, tools such as a special needs trust can help you provide them with financial assistance for their treatment even when you are no longer around. Distributing assets through a trust can also help ensure your loved one continues to qualify for government benefits.
- Protect your estate: A trust can even protect your loved ones from themselves. For example, if you want to pass on wealth to a family member who is not good with money, is in great debt or has an addiction, you could look into a spendthrift trust. This can regulate how much that person receives at a time and when they will receive it.
A trust is not only for those with immense wealth. You can supplement your estate plan with a trust adapted to your specific needs.