Estate planning provides the opportunity to address many legal, medical, and financial concerns that arise when incapacitation or death occurs. One of the most effective ways to ensure your final wishes are carried out is to establish a trust. In this arrangement, your assets are held and managed by a trustee for your beneficiaries. Similar to a will, it includes instructions about how to distribute your property once you’ve passed. However, trusts can serve several useful purposes that a will doesn’t.

3 Reasons to Include a Trust in Your Estate Plan

1. Protect Your Beneficiaries

With a trust, you can specify how and when assets should be delivered to your designated beneficiaries. This is particularly helpful if you’re worried how a beneficiary may handle their inheritance. It will also protect them from losing any of it to creditors.

Additionally, if you plan to leave money to a disabled friend or family member, putting it in a trust will keep them from being disqualified for government aid.

2. Avoid the Costs of Probate Court

Wills are legally required to go through probate, which is the court-supervised process of administering an estate. This can be time-consuming and costly, causing a delay in the distribution of assets. The assets you place in a trust aren’t subject to probate, allowing them to be transferred to your beneficiaries more smoothly, quickly, and cost-effectively.

3. Maintain Privacy

When a will enters probate, its details become public record. Since trusts aren’t administered in court, their contents stay private. Your assets can be distributed without anyone besides your beneficiaries knowing which person or organization they were passed to.

For help making sure your trust is set up and funded correctly, turn to the legal team at Ng & Niebling. They’ll advise you of your options and strategize ways to maximize the benefits of your estate plan. For over 40 years, they’ve assisted Honolulu residents in their efforts to prepare for the future and take care of loved ones. Call (808) 732-7788 to schedule a free consultation, or visit them online to learn more about their qualifications.