Do you need a trust?

On Behalf of | Apr 25, 2022 | Estate Planning

When you think about your estate plan, what do you think about adding a trust? Some people believe that a trust is only beneficial if they have many assets, but the truth is that trusts aren’t just helpful to the wealthy. Those who have property, such as a home, or significant assets can benefit from having a trust in place.

Adding a trust to your estate plan in Delaware helps you protect the assets that you’d like to pass on to your children or others. A good trust can also help reduce the risk of your assets ending up in probate or minimize the time, expense and publicity of probate proceedings.

You may benefit from a Delaware trust

In the State of Delaware, there are unique and innovative laws that help people obtain tax advantages and pass on their assets more easily. Using an irrevocable trust, which is a trust that can only be terminated or modified by a beneficiary, you can help yourself:

  • Improve investment flexibility
  • Protect your assets and keep them confidential
  • Minimize the taxes you’ll pay on trust assets

These and other benefits are important to keep in mind.

Irrevocable trusts are highly protective because they take assets out of your name completely. Then, once they’re employed, creditors can no longer go after those assets. They also won’t typically be included in the overall value of your estate, helping you reduce your taxes and prepare to qualify for Medicaid and other benefits as you age.

There are many different types of trusts for you to consider, such as self-settled trusts, charitable trusts and dynasty trusts.

Why have a trust when you already have a will?

While you might already have a will in place, having a trust is a good idea. A will isn’t as protective as a trust. Wills also don’t take assets out of your name, which means that the assets in your estate will still be considered a part of your estate for the purposes of valuing the estate and repaying debts.

There is a lot to think about as you work on your estate plan. Setting up a trust is one consideration to keep in mind.