In estate planning, a trust can be a powerful tool for those who want to protect their assets. In addition, having a trust can allow the grantor to ensure the fulfillment of their wishes after they pass away.
But with so much misinformation circulating, it is no wonder some people have more questions than answers. If you are seeking to create a trust as part of your estate plan, you may be wondering: What are the facts behind the misconceptions?
Are trusts only for the wealthy?
Some people believe that trusts are only for the extremely wealthy. However, trusts can be essential for anyone with assets, regardless of their value. A grantor can use a trust to avoid probate and indicate the distribution of their assets after their passing.
Are trusts only for avoiding estate taxes?
In addition, some believe that the primary purpose of creating a trust is to avoid estate taxes. In fact, it can help achieve other goals, such as supporting minor children, providing for loved ones with special needs or protecting assets from creditors.
Is it true that grantors can’t change their trusts?
Another common misconception is that trusts are set in stone once created. However, this is not entirely accurate because irrevocable and revocable trusts exist. In New York, a grantor can amend or revoke their revocable trust if they have the capacity to do so.
Are trusts really complicated and expensive?
Finally, some believe trusts are too complicated and expensive to be worth the trouble. While trusts can be complex, creating a trust can be a straightforward process. Further, the cost of creating a trust can vary depending on its complexity as well as the estate planning fees.
Aiming to take control of your legacy
Understanding the truth behind misconceptions about trusts can be crucial in your estate planning. However, navigating the complexities of creating a trust can be challenging. By seeking legal counsel, you may make informed decisions as you aim to take control of your legacy and protect your loved ones.