There seems to be no dispute that everyone should have a will, which provides a basic distribution plan for your estate when you die.  However, you may have more complex estate planning matters that would be better managed with a trust.  When would a trust better serve your needs?  Consider the following:

~ A trust permits asset management for certain named beneficiaries after you die.  Whether your beneficiaries are minors, young adults with little money management experience, or adults who need assistance managing a bequest, you may direct your named trustee to assist these beneficiaries with trust assets. 

~ You can direct your trustee to assist minors with their education and basic needs until they reach a certain age or to distribute trust assets over a period of time.  

~ A trust permits you to name one person as the beneficiary of certain bequests while giving someone else the use of that property for a period of time prior to distribution.  

~ A trust avoids probate, leaving it up to your trustee to manage your estate rather than a judge.  The probate process can be lengthy and potentially costly.  If you have property held in title in different states, your executor will need to go through the probate process in each state where assets are held in title.  Trusts allow your trustees to manage your estate without having to go through the probate process.  This allows your trustee to manage trust assets quickly without relying on a court to hold up the process or potentially go against your intentions on how your estate should be distributed.

~ Owners of businesses may benefit from putting their business in a trust.  By doing so, a business owner may reduce taxes, insulate trust assets from creditors, and ensure that the succession of your business coincides with your business’ objectives.

Some wills with trust provisions, known as testamentary trusts, work much in the same way as a trust.  However, they still go through the probate process, such as the average will, giving a court the ultimate decision on how assets will be distributed.  This always leaves open the possibility of your assets being distributed in a way you did not intend. 

Conversely, a trust gives your trustee the ability to manage your assets outside of the probate process.  This also allows your trustee to manage your assets in a more private manner without the scrutiny of the court.

Connolly Law can handle any matter involving wills, trusts, powers of attorney, probate, and guardianship matters.  Our attorneys are personable, knowledgeable, and care about the needs of their clients.  To learn more, visit our website at FamilyNHLaw.com or contact us at (603) 580-2887.