Ok, so you may own a home, have kids, and you may be middle class, but certainly may not rich, do you really need a Trust?
Yes, you do.
In fact, if you’re not rich, then it’s even more important for you to get a Trust and we’re going to discuss why that is.
Now, when you hear the words, “trust” or “trust fund,” you may be thinking of mansions the size of small castles, big party yachts, red Ferraris, and maybe white tigers in the front lawn…
But in reality, the term “trust fund” – typically refers to a Revocable Living Trust. Revocable Living Trusts are quickly becoming a popular estate planning tool for many people with a wide range of incomes who want to keep their family out of court and out of conflict after they die or become incapacitated.
Simply put, a Trust is the vehicle that makes sure your loved ones will be able to immediately get access and ownership of your assets after you die. If you die without a Trust, then the government will force your loved ones to go through a legal probate court process in order to get ownership of your assets.
But is probate court really that bad?
On average–and this can vary case by case–from start to finish, a typical probate court proceeding can last anywhere from 9-18 months and can cost your family tens of thousands of dollars by the end of it. In fact, when my dad died, my mom had to go through 2 years and 9+ months of probate court and had to pay her probate attorney $55,000 by the end of it.
And that was $55,000 back in the 90s when dad died. Let me tell you, that was an enormous loss for my single working mom to have to give up–and it almost left us in financial ruin. When you think about it, if a truly “RICH” person’s family, like Bill Gates, took a $55,000 hit, it probably wouldn’t be noticed.
But for my family, like so many other middle class families in America who own a home, are married, have children, being forced to go through probate court and pay tens of thousands of dollars by the end of it, can leave your loved ones devastated after you’re gone. That’s why it’s so important for middle class families who may not be “RICH” to set up a Trust to protect their family after they’re gone.
Even beyond making sure your family doesn’t get devastated by the cost of going through probate court after you die, if you have minor children, then you need to create a Trust. By creating a Trust, you ensure that if both you and your spouse died while the kids are still young, that you leave your assets with a person you trust. Someone like your one of your parents, your responsible sibling, your financial advisor, etc. This person would have the legal ability to step in as a Successor Trustee to manage these assets for the benefit of your minor kids and only use funds to pay for your minor kids’ healthcare, their school tuition, clothes on their back, and food in bellies. And if your children are adults? A Trust can protect your adult children from having their inheritance taken from them in a future divorce, lawsuit, or bankruptcy later in their life.
As you can see, there are many reasons to create a Trust, especially if you are a part of the middle class and don’t consider yourself rich. If you’d like to briefly discuss your family’s estate planning options, then you can schedule a 15-minute call with me, for FREE, at a time that works for you and your spouse.
This article is a service of estate planning attorney Elliott Feldman and the Elliott Feldman Law Group. We do not just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Family Prosperity Planning Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Prosperity Planning Session and mention this article to find out how to get this $750 planning session at no charge.