While creating a will is essential for your family’s future and ensures that your assets are distributed according to your wishes, it can only grant this protection for your family after your passing. On the other hand, a family trust provides protection in the face of unexpected occurrences while you’re still alive. Creating a trust can often be a complex process, given the uncertainty of the future and with a variety of family members and assets to consider, but let’s walk through a brief overview as a good place to start.
One of the most important things to consider when setting up a family trust is choosing the right trustee. This should be a person you trust deeply and who has the necessary knowledge to make financial decisions on your behalf. Next, with the help of an attorney or financial advisor, you’ll need to gather all your assets together to consolidate them within the trust. A trust document will detail your wishes for how the trust is to be managed and will set you up to fund the trust with all assets outlined, including your guidance for their usage.
Your wishes might change throughout your life, so you’ll want to update your trust along the way, consulting with a financial advisor to make changes periodically. Regarding various family members named in the trust, you’ll need to make decisions to distribute the assets according to your wishes, either before or after your death. We also recommend working with a tax advisor to ensure you pay the correct taxes on your trust.
Finally, remember that you can always dissolve the trust if it’s no longer serving its purpose, and you can create a new trust that better aligns with your life’s recent developments. Method is always here to support you at any step in this process.