Is a trust necessary for you or can you get by with a simple will?
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There are several factors to consider when deciding if you should spend the money needed to set up a trust.
Here are a few, says an article in Forbes:
- What part of your estate can you protect from probate? One of the key reasons for having a trust is so you can get around the time and cost of probate. Not all assets, such as retirement accounts, are not subject to probate, however.
- Will you qualify for simplified probate? In some states, probate estates under a certain amount can qualify. If so, it may not be necessary for you to spend the money needed to set up a trust.
- How costly is probate in your state? You need to find out from your estate planning attorney the cost of probate compared to the cost of a trust. Probate can be very expensive in certain states.
- Do you own out of state real estate? If so, you may be better off with a trust or you may have to go through probate in more than one state.
- How comfortable are you with the details of your estate being made public? If you want secrecy, get a trust.
- Do you have a child with special needs? A trust can provide for that child.
- Is your estate taxable – worth more than $5.34 million? If so, a trust may be used for keeping taxes to a minimum.