Three Reasons You May Need A Trust
What’s the difference between a will and a trust…and when do you need either? At CCHA Law, our estate planning attorneys are here to help you navigate these essential decisions. Read on as we walk you through three key reasons why you may need a trust (versus relying solely on a will).
Understanding the Difference: Will vs. Trust
When it comes to estate planning, many people wonder about the difference between a will and a trust. The key distinction is timing. A will becomes effective only upon your death, while a trust can take effect during your lifetime and continue after your passing.
A trust offers more flexibility and control over how and when your assets are distributed, both during your lifetime and after your death. Below are three important reasons you might need a trust as part of your estate plan.
1. Limit a Child’s Access to Inheritance
If you have minor children or young adult beneficiaries, you may want to control when and how they access their inheritance. A trust allows you to set conditions and designate a trustee to manage the funds until your child reaches an age where they can responsibly handle their inheritance.
The key benefit is that a trust can be set up to manage assets during your lifetime; it doesn’t have to wait until after you pass away.
2. Avoid Probate
One of the most common reasons people choose a revocable living trust is to avoid probate. When you fund your trust during your lifetime, your family can bypass the lengthy and often costly probate process.
A revocable living trust holds your assets, such as bank accounts, real estate, vehicles, and personal property, and ensures they’re distributed to your beneficiaries without court involvement after your death.
While creating a trust may involve higher upfront costs than creating a will, it can save your loved ones significant time, stress, and money in the long run.
3. Plan for Incapacity
A trust isn’t just about distributing your estate after death - it’s also a powerful tool for managing your assets if you become incapacitated. Whether due to age, illness, or injury, a trust ensures your successor trustee can step in and manage your finances if you’re unable to do so.
A trust provides peace of mind that your estate will be managed according to your wishes, even if you face mental or physical decline.
Work with an Experienced Estate Planning Attorney
At CCHA Law, our estate planning team is experienced in helping clients determine whether a will, trust, or both best suits their needs. We work closely with you to create a customized estate plan that protects your assets and provides for your loved ones.
Reach out to one of our seven locations across Indiana: Fishers, Fort Wayne, Crown Point, Noblesville, Tipton, Westfield, and Zionsville. Let us help you build a comprehensive plan that includes wills, trusts, powers of attorney, and other essential tools to secure your legacy.
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