Question: Why do we need a trust? Can’t our wills name someone to manage our children’s money?
Answer: Maybe you don’t need a trust! Maybe naming a Guardian for and Conservator of your children’s money in your wills, perhaps with a testamentary trust instead of a living trust is sufficient. Or maybe what you really hope to accomplish means you really would prefer a living trust instead. Or maybe what your family needs is a series of revocable and irrevocable trusts to address special situations or, for examples, significant family assets, family businesses you wish to pass on within the family, or blended families.
It’s a personal choice that only you can answer, but I strongly recommend you don’t answer it until you are fully informed and able to do so with a clear understanding of the ramifications of your choice.
Here’s a quick 3-question QUIZ to start to help you decide what you really want:
1. Does the idea of your Will and all the details of it being completely public record bother you?
2. Do you mind paying several thousand dollars in assorted and sundry court costs, professional fees, and expenses?
3. Would it be problematic to have to wait about a year or so to wrap things up and free up the money for your children’s needs?
Results: If you answered yes to any of the above you may prefer to establish a certain type of trust. If you answered yes to all three of the above, you almost certainly want to establish a trust. But here’s where it gets more interesting for those of us in Massachusetts – the law is on the verge of changing, and the new practice may change your answer.
Please stay tuned, I will explain in my next blog post to follow soon…