Everyone needs estate planning, regardless of how much you own or your net worth. Sometimes, people skip valuable estate planning tools because of misconceptions about needing a certain level of wealth to benefit from them.
A trust is a popular estate planning tool that can be used by a wide range of people to achieve their goals. You do not need to reach a certain level of net worth or have a specific number of assets to benefit from using a trust. However, there are certain points of financial stability and wealth that trigger advanced considerations in estate planning.
Trusts offer numerous safeguards and benefits for your loved ones and assets. In these legal arrangements, you transfer assets inside the trust for a trustee to manage on behalf of the beneficiaries. The appointed trustee has a legal responsibility known as a fiduciary duty to act in the best interest of the beneficiaries. Trusts provide numerous benefits, such as minimizing estate taxes, avoiding probate, adding a layer of privacy, and ensuring that your assets are distributed to your heirs.
Determining whether or not you should establish a trust depends on multiple factors, including the complexity of your assets, your net worth, your desire for privacy, and your estate planning goals. Net worth is not the sole determining factor for choosing a trust, although it is an important one.
Working with an experienced estate planning attorney is one of the best ways to cover all your bases when it comes to establishing a trust and using other estate planning tools. Finding an attorney early on allows you to establish a relationship now so that you can continue to update your estate plan over time. Contact our NH estate planning office today for more information.