When it comes to time decide estate planning details and strategies, there are a wide range of options for the modern family to implement. Michigan families should realize that not all estate plan options work for every family and an individualized approach may be helpful. One tool many find to be helpful is the creation of a trust as means of managing how assets are distributed among beneficiaries.
A trust is a popular estate planning option for a number of reasons. One main reason is the flexibility offered by a trust, as the stipulations that can be applied are endless and really give a family freedom. A trust can also include assets in addition to cash, such as real estate and life insurance policies.
A trust can be crafted to ensure funds are used exactly as the grantor sees fit. For many, this means releasing a certain amount of funds at milestones. This may mean payments to a beneficiary upon graduation, marriage, birth of a child or in annual installments as a supplement to a surviving spouse’s income.
Without an estate plan in place, a Michigan family may be leaving an estate and its valuable assets in the hands of the state, along with the right to make what should be very personal and important decisions. A trust is just one of many tools that can help each family find peace of mind about the fate of its assets and funds. In addition, certain types of trusts can be altered should the need arise, allowing families estate-planning flexibility.
Source: cincinnati.com, “Trusts remain useful tool in estate planning“, J. Brendan Ryan, Nov. 21, 2014