The estate planning process often involves using more than one method to make sure your loved ones get what you want them to have. While many people might think of the will as the first place to put assets they want to pass down, this is often not the best option.
When you include assets in the will, the transfer to your loved ones becomes part of the public record when the will goes through the probate process. There’s also the chance of someone contesting the will if they meet these criteria and don’t believe your will is legally valid.
Irrevocable trusts have many benefits
One option that you have to get these assets to your loved ones is to establish and fund an irrevocable trust. This type of trust can’t be changed or canceled once you do this, so you must ensure that it’s set up exactly how you want it.
The irrevocable trust bypasses the probate process, so it provides your loved ones with privacy regarding what they’re receiving from your estate. This could be an important safety measure for them. Another benefit to an irrevocable trust is that it offers a shield from creditors. Because you don’t have control over the assets in the trust, your creditors can’t touch the assets held in it. Your loved ones could benefit greatly from this.
An irrevocable trust also provides some tax benefits that a basic will or a revocable trust doesn’t provide. Learning more about this may help you to make an informed decision.
Customizing your estate plan ensures your loved ones know your wishes and can follow them after you die. Working with someone who’s familiar with the various components of an estate plan can help you to get things set up as quickly as possible.