The Sobering Truth About Estate Planning in America
It’s time to face an eye-opening truth: estate planning in the U.S. is at an all-time low. According to a recent survey on caring.com1, only about a third of Americans have their estates planned. That means most of us are leaving our loved ones with the burden of sorting through our assets and liabilities – potentially causing unnecessary stress and conflicts. It’s a situation that could easily be avoided by setting up a trust.
Setting Up a Trust is Easier Than You Think
It may sound not easy, but it’s much easier than most think. With the help of an experienced attorney, a trust can be established relatively quickly. The process involves discussing goals and wishes, identifying assets and beneficiaries, and selecting a trustee for management. A trust attorney can guide the legal documentation and ensure everything is executed correctly. They are designed to be flexible, allowing changes or amendments as needed. So, don’t let the fear of complexity deter you from protecting your legacy.
Benefits of Establishing a Trust
Establishing a trust comes with a multitude of benefits that can make the process of estate planning easier for you and your family. First, it allows most to avoid the costly and time-consuming probate process, ensuring that assets are distributed quickly and efficiently. Additionally, setting it up can help reduce estate taxes, ultimately preserving more wealth for loved ones and carrying out the wishes of the person it’s set up for. Another significant advantage is that it provides protection of assets against potential creditors.
Can I use my will as a trust?
No, a will and a trust are distinct legal instruments with different purposes. A will is a document that specifies how a person’s assets should be distributed after their death. In contrast, a trust is established during a person’s lifetime to manage and distribute assets, often bypassing probate and providing additional benefits.
Contact an Amerant Bank Trust Advisor today for more information on how it can benefit you and your family.
1 Caring.com’s 2023 Wills Survey Finds That 1 in 4 Americans See a Greater Need for an Estate Plan Due to Inflation1