Ep # 96: When Trusts May Make Sense (and Don't) In Your Estate Plan

Most people are familiar with trusts through conversations or experiences with their parents or friends.  But just because the circumstances may have made sense for them to establish a trust, it doesn't mean that it is right for your situation today.  In this podcast episode, we discuss what a trust is and what it does.  We discuss circumstances where it may apply and where it may not.  And, we also clarify what type of accounts you should put in a trust.What is the purpose of a trust and how may it apply to you?  If you want to maintain control or protect somebody else from this money.  With a trust you can dictate a lot of the what-ifs in the future.  Decisions are made while you're living, so you can list very specific instructions and restrict when people have access to money.  You can also restrict what they use it for.  In blended family situations, the trust may dictate which assets go into the trust. If you are concerned about privacy, a trust will keep assets from flowing through your Will and the probate process, which is public record.  Ease of management.  This may not be common today, but in the past revocable trusts were created so instead of updating beneficiaries on all accounts, you only needed to make one update to the trust document.In certain cases, depending on the intent, a trust may make sense for real estate assets. Does a trust help with taxes?The estate exemption is $13 million for individuals or $26 million for a couple. (Increased Gift and Estate Tax Exemption Amounts For 2023)Many people are building their wealth through retirement accounts.  If you put a retirement asset into a trust, you are changing ownership of it.  Not to mention. money must be taken out of the retirement account, probably resulting in paying income taxes on it, to now put it into a trust or have it titled as trust assets just to avoid the estate taxation.We are not estate planning attorneys, but when you're making big estate decisions like this, it's important to think about how they match up financially with your own life and your own needs. Try to find the efficiencies and teamwork with an estate attorney and financial planner.If you want the nitty gritty on how we think and feel about trusts, check out Episode 21 on: "If's, And's, and But's - Probably Constitutes A Trust."And if you still have questions about trusts and your specific situation, please reach out: https://www.haasfinancialgroup.com/Tracking # T005527Thanks for listening!If you want to be notified when the next episode will be released, you can:Subscribe to the ShowFor more insights on everyday financial planning questions,  go to www.haasfinancialgroup.comContact Us:Email us at [email protected] advice offered through Great Valley Advisor Group, a Registered Investment Advisor. Great Valley Advisor Group and Haas Financial Group are separate entities. This is not intended to be used as tax or legal advice. Please consult a tax or legal professional for specific information and advice.