TOP 10 - non-tax reasons for trusts

   10. Protect solely owned assets while retaining sole management and control.  Life estates, joint ownership, POD and TOD designations can be used to avoid probate but each may have ownership or control consequences in the event of accident, business set-back, divorce, bankruptcy or bill-collection.  Insulate against these issues with a trust.

    9.  Delegation of management of assets may be desirable in the future.  Waiting till a day you can’t make good judgments to transfer control and care is not the plan. Do it while your judgment is good by using trusts

    8. Family and friends reside outside of state of residency. Appointment of an executor or personal representative you trust can be difficult because of probate court jurisdiction but that issue is side-stepped with trusts.

    7. Ownership of real estate in more than one state. Because of probate court jurisdiction, each state in which real estate is held may need some probate proceeding but that duplication can be avoided with trusts.

    6. Owners of jointly-owned property who want to avoid probate on both estates.  Joint ownership can avoid probate in the estate of the first joint-owner to pass away but the estate of the survivor could be subject to probate unless trusts are in place.

    5. Same gender partners. Even with the defeat of DOMA same gender partners or spouses and their children can face unique challenges that estate planning and trusts can solve.

    4. Children by a previous marriage. Some spouses want to keep property brought into a second marriage separate and trusts can help achieve that goal.

    3.  No spouse or children. If there are no natural heirs or close relations, a living trust assures proper administration.

    2. Minor children and large estates or large life insurance policies.  If minor children receive life insurance of inheritance directly, probate may be necessary to supervise their assets but that can be avoided with trusts.

    1. Owning a business.  A trust can help with an owner’s concerns about continuation of the business upon the owner’s death or incapacity, maintaining privacy of business and personal financial affairs, valuation, liquidity, and un-involved beneficiaries.