ORDERLY TRANSFER OF ASSETS AT DEATH
We've all heard the phrase "You can't take it with you." Then what does happen to it?
Dying without a will or a trust is called dying intestate. When that happens, the laws of the state and the courts decide what happens. That's not what most people want.
Some people have a will to allocate their assets according to their final wishes. While this is helpful, there is more flexibility when combined with a trust.
When you establish a trust, you can appoint someone (the trustee or trustees) to make decisions about your property in accordance with your expressed desires and their best judgment as needed. With a will or no plan, all assets must be distributed immediately or when the beneficiary reaches the age of majority. With a trust, the assets can be held almost indefinitely and administered as you would if you were alive. For instance, assets can be used to finance education for your descendants. You can even specify what GPA they have to maintain to receive funding. About the only thing you can't do in your trust is motivate someone to divorce or commit a crime.
Dying without a will or a trust is called dying intestate. When that happens, the laws of the state and the courts decide what happens. That's not what most people want.
Some people have a will to allocate their assets according to their final wishes. While this is helpful, there is more flexibility when combined with a trust.
When you establish a trust, you can appoint someone (the trustee or trustees) to make decisions about your property in accordance with your expressed desires and their best judgment as needed. With a will or no plan, all assets must be distributed immediately or when the beneficiary reaches the age of majority. With a trust, the assets can be held almost indefinitely and administered as you would if you were alive. For instance, assets can be used to finance education for your descendants. You can even specify what GPA they have to maintain to receive funding. About the only thing you can't do in your trust is motivate someone to divorce or commit a crime.