Should a trust be part of your estate planning? Trusts are typically associated with the very rich, but a surprising number of people use them to solve a variety of problems or achieve a range of different objectives. In the most simple terms, a trust says who gets what when. The Pennsylvania Institute of Certified Public Accountants spotlights three situations in which a trust might suit your needs.
Set terms for your heirs
Some parents may want to leave all of their assets to their children, but they might have concerns about how soon the kids should have control over the money they inherit. In that case, a testamentary trust, which is written into a will, may be the answer. For example, it can be used if a couple wants to leave their money to their children but, in case they die when the children are young, they want to name a trustee in the will to manage that money until the kids reach a certain age, graduate from college, marry, or any other point they might choose. This kind of trust can also be used when the beneficiary is someone with a disability who might need assistance overseeing the inheritance. It is generally easy and inexpensive to add a testamentary trust to a will.
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