You may have heard the misconception that you need to be wealthy to have a trust. That is not true. You don’t have to be a millionaire to set one up. A trust can be a useful estate planning tool for many people, including mixed families, those who inherit money, and people you care about.
According to this CNN/Money article, “If you have a net worth of at least $100,000 and have a substantial amount of assets in real estate, or have very specific instructions on how and when you want your estate to be distributed among your heirs after you die, then a trust could be for you.”
Trust Uses
There are many types of trusts [link to new blog post], which are dependent upon the grantor’s preferences and goals. Each type has pros and cons [link to new blog post], which you should discuss with an estate-planning professional before choosing.
Trust Qualifications
There is no required minimum value required of a trust. An attorney will charge a fee to draft a trust agreement, however, so it might not make sense for someone of very modest income to create a trust. The cost varies around the country and based on how complicated the trust is. Fees generally range from $500 to $3,000. Many institutional trustees impose a minimum annual fee for serving as trustee, so again it might not make sense for someone of modest means to create a trust with an institutional trustee.
Let us know if you’d like to discuss how a trust may help you.
You Might Also Like
