Why Do I Need a Trust?

One of the most common misconceptions about trusts is that only the truly wealthy benefit from establishing a trust. However, there are many reasons and circumstances where trusts can be beneficial, regardless of your income level or net worth. You’ve worked hard for your savings and may wish to leave a lasting legacy. Trusts are frequently used to:

  • Provide a framework for investing your assets, by persons you choose, according to standards you set
  • Set guidelines for when, how, and why your heirs receive monies, based on your values.
  • Obtain tax benefits
  • Provide an expedient method for transferring assets both during life and at death.
  • Preserve wealth for future generations
  • Provide meaningful support to charities important to you through donations, grants, scholarships, endowments and more

The primary objective in establishing a trust is to ensure assets are protected, managed and distributed in accordance with your wishes when your are no longer able to do so yourself. In certain circumstances, an estate planning attorney may recommend creating an irrevocable trust during your lifetime, in addition to a revocable trust to provide creditor protection, controlled giving to family members, or estate tax minimization. A trust can provide the confidence that you have a plan in place to help provide for the safe and accountable management of family assets and to direct their use and distribution in accordance with your wishes, goals and objectives.