While a trust can be a great estate planning vehicle, many people choose not to use them because they think it might not be helpful for their situation. They may think they do not have enough money or won’t be able to see any benefits. Here are the top myths that cause people to avoid trusts.
- You Cannot Access the Funds in a Trust
There are some trusts that you cannot access once you put them into the trust. In a living trust, you can access the funds any time that you want to. You can also make them accessible to any person that you wish to. Now, you can set it up to where you cannot access the funds in your lifetime. The reason that some people choose this route is that those funds and assets remain untouchable by creditors. You still technically own the assets if you can access the trust during your lifetime.
- You Do Not Benefit From the Trust
While trusts do benefit your heirs directly, the trust can benefit you too. Trusts can make it easier for your loved ones to handle your affairs after you pass away. Also, it provides you with security if something were to happen to you where you are incapacitated. The trust includes your wishes for how you want your affairs taken care of. If you cannot do it, you can trust that you left your affairs in good hands.
- You Can Avoid Probate Completely With a Trust
When you have a trust, most of your assets can avoid probate. If you are like most people, however, there may be assets that you do not put into your trust. You may have forgotten to or you may not have had time to put those assets into the trust. In this case, your loved ones will still have to go through the probate process.
- You’re Not Wealthy Enough for a Trust
One of the biggest myths about trusts is that you have to be wealthy to have one. They are considered to be a vehicle for the wealthiest individuals, rather than for the middle class. The truth is that people of all economic statuses can benefit from a trust. A lot of people with average incomes use trusts.
If you thought that a trust did not apply to you, it might have been due to the myths floating around about trusts and who can use them. If you are interested in finding out whether a trust would work for your situation, contact an estate planning lawyer from a law firm like Klenk Law. Getting professional help with your particular situation will allow you to get a better understanding of how trusts work and if it is worth considering when planning your estate.