You may have a home, some savings and retirement accounts, but still feel like estate planning can wait. Perhaps you are relatively young or do not have significant assets yet, so a trust does not seem necessary. In reality, you do not have to reach a certain age or level of wealth before trust planning becomes useful.
Here are three ways a trust could fit into your family’s plans.
A trust can help with future family needs
Creating a trust before you expect to need one can help you account for changes that could affect your family later. You might eventually need to plan around disability, long-term care or changing health needs.
You also do not need substantial assets today for those future concerns to make trust planning worth considering. Addressing these possibilities while you have time to consider your options can help you create instructions that reflect your family’s circumstances.
A trust can help manage your assets during your lifetime
If you become unable to handle your finances, a trust can provide instructions for who should step in and how they should handle certain assets. For example, illness or an injury could leave you unable to decide on matters related to your finances for a period of time.
Having instructions in place lets someone you choose follow your wishes for those financial matters, rather than leaving your family to figure things out during a difficult time.
A trust can give you more control
You can use a trust to set specific instructions for how and when your assets should be distributed. For example, you can establish when a beneficiary receives money from your estate, either as a lump sum or as monthly funds. Starting this planning earlier also gives you more time to adjust those instructions as your family, finances or priorities change.
Missouri law generally allows you to amend or revoke a revocable trust unless its terms make it irrevocable, which can provide flexibility as your circumstances evolve.
Build your plan with the right guidance
Understanding what a trust can accomplish can help you decide whether one belongs in your estate plan, even if you are still building your assets or have many years before you expect to use it. Reviewing your circumstances and existing estate-planning documents with an attorney can help you determine which trust options fit your goals and how to structure them properly.