The idea of creating an estate plan is sometimes offputting to certain individuals. They may not like the idea of having to think about what should happen to their belongings after their passing or what decisions should be made if they become seriously ill. As a result, when they do decide to start planning, they may want to go with a bare-bones approach that could help them complete the process quickly. However, it may be wise to go beyond a will and consider trust preparation as well.
Some California residents may automatically think that trusts are only for extremely wealthy people. Fortunately, that is not the case, and almost anyone could benefit from using this planning tool. It can allow interested individuals to better control what happens with their assets by leaving specific instructions as to how and when they should be distributed, which differs from the automatic distribution of assets at the end of probate.
Trusts also offer more protection for assets than simply bequeathing them in a will. For instance, if a loved one has considerable debt or faces a lawsuit that results in him or her having to pay compensation to another party, the assets in the trust would be protected from creditor claims and lawsuits because those assets do not yet strictly belong to the beneficiary. Of course, the terms of the trust and the type of trust used can affect how much protection it provides.
Trust preparation does not have to be intimidating. Often, when individuals have the right information, they are able to see just how helpful trusts can be for numerous scenarios. If California residents are interested in utilizing this planning tool, they may wish to discuss its uses with knowledgeable legal professionals as part of their planning process.