A Trust is a little bit like a company. For most kinds of Trusts, you create a Trust, and then you take your home and other real property, and put it in the name of the Trust. Your home’s deed, then, would be in the name of your Trust instead of your name, as would other property you own. The Trust also gives directions on how your money and belongings should be used after you pass away.
Why have a Trust?
1. You want to provide for a child who has trouble caring for themselves. You can set the Trust up to give this child regular monthly payments after you pass away, instead of a lump sum all at once. This is often referred to as a Special Needs Trust, and it’s a great way to avoid making your child ineligible for government aid when you pass away.
2. You will be leaving a large sum of possessions and/or money to your children, and you don’t want them to pay an inheritance tax on it. A Trust can protect your hard-earned money from the government.
3. You don’t want your home or money to go to Medicaid to pay for nursing home care when you pass away. This kind of trust is called an Irrevocable Trust, which means that, unlike other kinds of Trusts, you can’t change it once it’s created. If created several years before you’ll need Medicaid to help pay for a nursing home, it may be protected from Medicaid.
4. You want to make sure your children get an inheritance of you pass away and then your spouse remarries.
There are many other reasons for getting trusts. They’re not as cheap as Wills, but in some situations they are extremely useful, and they may be your best option for your estate plan. I have offices in Idaho Falls and Pocatello; call me at 208-206-1475 to know if a Trust is right for you.