Who Needs a Trust?

DEAR TRUST OFFICER:  I’ve put it off long enough, I’ve made an appointment with an estate planning lawyer.  Do I need to have a trust in my estate plan?—GETTING STARTED

DEAR GETTING STARTED:  More information is needed to answer your question, but probably yes; a trust very likely will add value to your estate plan.

Are you married?  A trust for a surviving spouse has long been a standard element of estate planning for married couples, because it avoids state and federal death taxes.  Such a trust doesn’t need to tie up assets; the spouse may have full access to trust principal and income if death taxes are not a concern.

Do you have kids from an earlier marriage?  In that case, a Qualified Terminable Interest Property Trust (QTIP trust) can provide for your surviving spouse while securing a future inheritance for those children.

Are you concerned about the longevity of a child’s marriage?  An inheritance in trust may protect those assets from claims in a divorce.

Do any of your heirs have substance abuse problems or lack financial maturity?  If so, are you concerned that any inheritance will be a short-term windfall?  A spendthrift trust may convert those assets into a financial resource that lasts a lifetime.

Do any of your heirs have special needs or disabilities?  Carefully designed trusts may augment their financial well-being without jeopardizing access to public benefits.

Are you planning a gift to charity?  Charitable trusts may provide for both philanthropic and private goals in a tax-efficient manner.

Have you made financial plans for yourself for your retirement years?  A revocable living trust can provide for continuous financial management in case of incapacity.  It also may avoid the need for a court-appointed guardianship.

Are you concerned about financial disruption for your family when you die?  A living trust can provide continuous and uninterrupted investment and financial management at your death.

Is privacy a concern for you and your family?  A living trust may shield the details of your financial life from exposure, in contrast to a will which—by law—must be made public.

These are just a few of the common circumstances in which sound trust planning will contribute value to an estate plan.  We’d be pleased to tell you more at your earliest convenience.

Do you have a question concerning wealth management or trusts?   For any inquiries, please contact us.