|Posted on January 15, 2015 at 5:35 PM|
A Trust can be a very good Will
It is important to know why you have a trust and to maintain this focus on this over the years. Too many trusts are formed without the settlors of those trusts being able to summon up a reason why they have one.
There can be specific reasons such as a charity , education funds or ACC payouts to be protected for infants. A trust is very valuable in the sitauation where disabled children need to be cared for after the death of the parents.
They can own holiday homes for wider family, or in some cases used as asset protection in second marriages or to keep assets in the family.
The most common one I relate to is that trusts make very good wills in some cases. They are flexibleas as to timing and distributions when they need to be in ways a will cannot be.They can better ensure your family do in fact receive what you want them to have.
A will is made a little bit as a guess into the future of how things will be when you die, but a trust is able to make decisions within your guidelines at from time to time, and with all the advantages of hindsight.
A will is still adviseable, of course. It will deal with your personal assets, while the trust may hold to bulk of your assets. A will can have the trust as a beneficiary.
A trust can rarely do you harm and could be very useful in your overall estate and succession planning. A discussion on future planning will quickly show whether you and your family may benefit from a trust.