Who Is the Ideal Beneficiary of a Trust?

Despite what the AI summaries that appear above the organic search results might tell you, not everyone needs a trust. The deciding factor is not how wealthy you are. If you are wealthy, but you accept that tax laws apply to you, too, then there is no need to establish a trust; you can simply let probate take its course, and your heirs will still inherit amounts that most people can only dream of. Besides, if you are of ample means but are loath to see the IRS take its share of your estate, there are other ways that you can keep assets from becoming part of your estate before it goes through probate. For example, you can designate payable on death (POD) or transfer on death (TOD) beneficiaries on your bank accounts. You can even give cash gifts every year, so that your heirs receive a substantial part of their inheritance while you are alive. What determines whether you need a trust is who the beneficiary of the trust would be. It is easier to provide for certain people through a trust than through an inheritance from your will. To find out more about trusts and for help establishing one, contact a Bronx estate planning lawyer.

A Family Member Who Cannot Become Financially Independent

It makes sense to establish a trust for a family member who cannot become financially independent of you because of a disability. If you leave this person a share of your estate in your will, he or she will be vulnerable to financial exploitation. You can set provisions in your will for someone you trust helping the beneficiary manage his or her finances, but you are on firmer ground legally if you set up a trust where the trust instrument specifies how the trustee should spend the money for the beneficiary’s benefit.

The Black Sheep of the Family

Unfortunately, heirs sometimes try to use probate as an opportunity to disinherit relatives they don’t like by challenging the decedent’s will. If you think that your spouse will suffer from your children’s efforts to deprive their stepparent of an inheritance, then you can prevent this by establishing a trust with your spouse as a beneficiary, while making your children the sole beneficiaries of your will.

Four-Legged Friends

Listing pets as beneficiaries of your will never goes well. Domestic animals count as property, so someone can inherit them, but they cannot inherit property. The best option is to set up a trust that provides for the animals’ care. Be specific about how you want the trustee to spend the money, and bear in mind the usual lifespan of the animals that will benefit from the trust.

Schedule a Confidential Consultation With a Bronx Estate Planning Attorney

An estate planning lawyer can help you establish a trust for the right reasons and ensure that it accomplishes its intended purposes.  Contact Cavallo & Cavallo in the Bronx, New York to set up a consultation.

Source:

msn.com/en-us/money/realestate/10-things-you-should-leave-out-of-your-will-according-to-experts/ar-AA1RKmE3?ocid=msedgntp&pc=ACTS&cvid=69336570bd4045e49b38b38a1a65d33e&ei=11