In trusts should you trust?

Avoid probate
The probate process, which begins when someone dies, involves checking that the will is valid, identifying and assessing the property involved, paying any required taxes and allocating the property to the correct heirs. These steps can take time, and there are fees involved, which is why some people turn to revocable living trusts. In a typical case, you might transfer ownership of important property—such as real estate or bank or investment accounts—to the trust, naming yourself as the trustee. You also name a successor trustee who will distribute the trust property to your beneficiaries when you die. Your heirs receive their inheritance from the trust immediately upon your death, side­stepping probate, and the process is more private than probate. It’s also possible to remove items from this kind of trust during your lifetime if, say, you decide to sell your house or access an investment. And if you become too ill to manage your assets, the successor trustee can take over for you.
Deal with family complexity
Forty percent of weddings are a remarriage for at least one of the partners involved, according to the Pew Research Center. That can complicate estate planning when, for example, the spouses want to ensure that, when one of them dies, the surviving spouse has enough to live on but also wants to guarantee that children from earlier marriages get their intended inheritance. A Qualified Terminable Interest Trust may be the answer. A QTIP can make it easier to ensure you provide for both spouses and children in blended families.
Don’t forget the will
Although trusts can be useful, they should not take the place of a will, which can address how assets outside of a trust might be handled. Other important documents you need include a living will or health care directive, which spells out the medical treatments you’d want to use to prolong your life; a health care proxy that identifies who can make medical decisions for you if you are incapacitated; and a durable power of attorney, which establishes who can make financial decisions for you if you’re unable to do so and are still living.
 
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