Creating an estate plan that meets all of your needs and goals takes careful thought and consideration. During this process, you will be faced with choices about which documents you really need. Everyone, regardless of their age, health, or financial status, needs certain basic documents. These instruments include health care proxies, durable powers of attorney, and HIPAA releases. It is also strongly recommended to have a will to dictate who should inherit your assets. Do you also need to add a New Hampshire revocable living trust to your plan? The answer may surprise you.
Whether or not you should add a trust often has less to do with how much money you have and more to do with your personal circumstances and priorities. A millionaire who has all of his wealth in an IRA may find that simply naming his wife as the beneficiary of the IRA accomplishes his main goals. On the other hand, a young couple with minor children who own their home may realize that a revocable trust can help them avoid probate and have greater control over how their children receive their inheritance.
6 Reasons to Consider Adding a Revocable Trust to Your Estate Plan
The following are six reasons you might need a trust in New Hampshire:
- You have minor children. Holding assets in trust for their benefit avoids the needs for probate court involvement in managing the inheritance and helps to ensure your assets are put to their best use while the kids are young.
- You own real estate. If you do not want your loved ones to have to probate your estate after you pass away, owning real estate in trust allows for a quick and easy change of ownership without court involvement.
- You want to make things easy on your loved ones if you become incapacitated or pass away. Administering a trust is a lot easier, faster, and typically less expensive than going through a full probate administration.
- You own property in more than one state. If you own probate in more than one state, a trust can help avoid the need to open up multiple probate administrations in the various states.
- You have concerns about your beneficiary inheriting assets outright. Worried about a potential divorce, bankruptcy, or lawsuit involving any of your beneficiaries in the future? Holding the assets in trust can help protect their inheritance.
- You want to have a say in what happens to your assets after you die. Leaving assets to a loved one through a will is effective. Unfortunately, wills must still pass through the probate process, and the assets are simply distributed to the beneficiaries. Trusts not only avoid probate, they also allow you to exert control over the assets for many years into the future.
The first step in deciding whether or not you need a trust is to contact an experienced Exeter estate planning attorney. We are here to help educate you about trusts and guide you through the process of deciding whether you would benefit from this estate planning tool. Contact us today for a consultation by calling (603) 434-1770.