Idaho Law Blog
By Lane V. Erickson, Attorney
When it comes to estate planning there are a myriad of options available. The type of estate planning that is completed for a person really depends on what it is they want to accomplish and the size and type of the estate they own. Through my experiences in helping individuals create a customized estate plan I’ve come to learn that there are 4 specific reasons why people like having a Trust more than a Will.
1. MULTIGENERATIONAL BENEFICIARIES
Some individuals have very large Estates. They feel the need to create a plan that will allow them to provide financial benefits to their descendants for several generations. This is known as multi-generational beneficiary planning or dynasty planning. This type of planning can be accomplished with the use of a trust. It is virtually impossible to do this through just a Will without there being some sort of testamentary trust included. For this reason, individuals and families with very large estate will often employ the use of one or more trusts in their estate planning.
2. PROTECTION FOR BENEFICIARIES
The second reason that individuals like to use a trust in their estate planning is that it provides for protection of their beneficiaries. This can include beneficiaries with special needs who will require obvious care and help throughout their lives. However, this type of protection can also include beneficiaries who have capacity but who lack the ability to manage their own finances. If property is distributed to a beneficiary through a Will then that beneficiary’s spouse (in the case of a divorce) and/or creditors (in the case of litigation or a bankruptcy) may have the ability to collect the distributed property or money away from the beneficiary. By using a trust, the individual who sets the trust up can put in specific language controlling and protecting distributions to beneficiaries so that the property or money will only be used for the benefit of the beneficiary without risking it being lost.
3. PRIVACY
One of the greatest benefits of having a trust is that it is entirely private. There is no right of any particular individual to have a copy of or to know about the contents of a trust. The person who creates the trust is entitled to know as is the person who is acting as the trustee. Otherwise, individuals outside of the family have no legal right to understand or know what the trust says or what it does. Many of my clients point to privacy as being one of the greatest benefits of using a trust in their estate planning.
4. AVOIDING PROBATE
Along with the third reason listed above, perhaps the biggest benefit of having a trust is that it allows you to avoid probate of your estate when you die. I’ve come to find that there are a number of clients who want to keep their estate as private as possible. Probate of an estate is a public action which allows anyone in the public to review any and call court filings associated with the probate. Additionally, I find that clients want to avoid the cost and the time associated with the probate. By using a trust distributions can be made immediately upon the death of the creator of the trust without the need of filing any type of probate.
If you have questions about whether a trust would be useful in your estate planning, we can help. Call us toll free at 877-232-6101 or 208-232-6101 for a consultation with Lane Erickson and the Racine Olson team of Estate Planning attorneys in Idaho. You can also email Lane Erickson directly at lve@racinelaw.net. We will answer your Idaho Estate Planning questions and will help you solve your Idaho Estate Planning problems.
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