Can You Make A Trust If You Aren’t Wealthy?

Financial trusts are an easy way to pass things along to your children and other relatives while avoiding estate taxes and other rules and regulations. There are a variety of different types of trusts; there are living trusts that can be used in conjunction with a will, and then there are also trusts that allow you to pass money onto specific beneficiaries. Anyone can use a trust, however, there is a common misconception that they are only for the very, very wealthy. A trust can actually be very helpful to you even if you are a middle class family.

Many middle class professionals don’t even realize that a trust could be helpful to them. If you had considered making a will, you may also want to consider creating a living trust in conjunction with it. This allows you to transfer certain assets to a trustee upon your death and have them distributed according to your wishes, therefore avoiding probate and getting your assets to your family very quickly. You can also use a trust to save money for your children’s future. In many cases, there’s no minimum requirement for how much you can contribute to their trust fund, so you don’t need to be wealthy to use it. You can use a trust fund to give your children money for college, future living expenses, healthcare, or anything else.

Setting up a trust can be somewhat complex and time-intensive, which is why many people tend to avoid them. However, the amount of effort you put in to create the trust can be worth it in the long run when your assets pass on seamlessly to your beneficiaries with no complex probate proceedings or other major challenges. You also will need to pay fees for an attorney to set up the trust, which can be a downside for many middle class consumers. However, these fees can have a huge payoff in the end, because you’ll save money on estate taxes. When your items are in a trust, they are often exempt from certain taxes that you would otherwise pay, depending on the specific items and the type of trust you have. In the long run, this can be a huge financial benefit for both you and your family, particularly if you are planning on continuing to amass wealth in years to come.

It’s very important when putting together a trust that you have the help of an experienced and reliable estate attorney and financial planner. Trusts can be quite complex, and if the documents aren’t reviewed properly, you may end up with costly mistakes that could cause major problems in the future. Avoid any online websites that boast of allowing you to make a trust on your own to avoid legal fees. Since the documents created by these sites are not reviewed properly, you will likely have issues down the road when putting the trust into effect.

To find a great trust lawyer, talk to friends and family who are in a similar economic situation as you, and see if they know of anyone. When creating a trust as a middle class consumer, you want to find an attorney that provides the best possible value for money so you can get the most possible benefit out of your trust. Be sure to interview any potential trust professionals before hiring them to make sure that you are comfortable with them handling such an important financial situation. You should also review their credentials and make sure they have experience in similar situations. With some careful planning, you’ll likely find that setting up a trust is easier and more affordable than you might have initially thought.