Estate planning is something that can benefit virtually every family in Pennsylvania, and while, for many, that statement may bring to mind the topic of wills, it is equally important to investigate the concept of establishing a trust. Doing so can help alleviate the hassles and expense of avoidable probate processes, but the key is to differentiate between the different types of trusts available and to make a choice that suits your unique circumstances.
Key reasons to establish a trust
While conventional wisdom suggests that everyone ought to have a will, for those wishing to distribute assets to heirs in the most convenient and least complicated way, trusts may be a better option. Trusts can prevent costly and stressful will contest proceedings, and they can facilitate an essentially seamless transfer of an array of asset types, including:
- Real estate
- Life insurance policies
- Business holdings
- Securities and other investments
- Valuable tangible property, such as antiques
As useful as trust vehicles can be in effectuating an individual or family’s asset disposition wishes, it is critical that a firm grasp of the distinctions between a range of trust types be gained so that a sound choice can be made.
Differentiating among trust types
When the time comes to craft an estate plan, knowing the various features and benefits different kinds of trusts can offer will help ensure that your objectives are ultimately met. Whether the flexibility of a revocable trust is needed due to potentially changing family circumstances, or the safety and permanence of an irrevocable trust makes more sense in a given scenario, there is a vehicle to suit every situation.
Because there are also trust types that can be used to reduce overall tax liability, guard against a beneficiary’s overspending, provide for special needs loved ones or fulfill a particular charitable intent, it really is possible for everyone to develop a plan perfectly tailored to match their objectives.