The more assets you have, the more complicated estate planning becomes. Those with significant personal property typically need to consider their legacy more carefully. Complex assets, such as a business or multiple investment accounts, may require instructions on how to transfer that property to heirs or how to liquidate holdings.
The more assets you have, the more important it becomes to plan for their distribution and management after you die. High-asset individuals typically have greater need for estate planning than the average adult. They may also benefit substantially from integrating a trust into their legacy, a decision which comes with numerous benefits.
Trusts can protect your legacy and loved ones from taxation
The greater the value of the property you own, the greater the risk that your estate will be subject to taxation. Those who own businesses or who otherwise have multimillion-dollar estates can use a trust to hold some of their most substantial assets and potentially limit or even eliminate the taxable value of their estate.
Trusts can help you protect the people you love from making mistakes
A big inheritance can lead to even bigger mistakes. People might squander resources that could potentially set them up for a wonderful future.
Particularly if you have family members who have a history of questionable financial decision-making, limiting how they use the assets could help protect them from the numerous potential pitfalls of a large inheritance, ranging from overindulging addictive tendencies to becoming the target of a scam artist.
Trusts allow for the quick and smooth transfer of significant assets
There can be all kinds of complications that affect the transfer of property to other family members when someone dies. Disputes about the estate plan could lead to challenges and delays. Claims by creditors or issues with taxes might even undermine the ownership of major assets like real estate or a business.
Given that assets used to fund a trust typically do not have to pass through probate to transfer when someone dies, trusts can be useful tools for those who need to ensure the quick and uncontested reallocation of their property.
Having greater overall assets means greater risk for mistakes or greed-based challenges against your last wishes. Careful estate planning that integrates a trust can help protect your legacy and limit the opportunity of others to undermine it.