With the recent news of the death of music legend Prince Rogers Nelson, Living Wills and Living Trusts are major trending topics. Many people believe that they need a Living Will and this is correct. Everyone needs to have a current and valid Will on hand to ensure their assets and final affairs are taken care of if the unthinkable happens. However, many people mistakenly believe that a Living Trust is not necessary if they are not wealthy. This is incorrect for several reasons. If you have any of the following considerations, a Living Trust is a must-have.
The best way to ensure that your assets are used to take care of your minor children if you pass away is to set up a trust now. Your trustee will then be charged with using your assets only for the care of your children, in a manner that you can specify within the trust documents. This will ensure that no matter how much money you leave for the care of your children, it will not be misappropriated for other uses.
Elderly / Disabled Family Members
Having a trust on file is also important if you have elderly or disabled family members that are dependent upon you for care. Your trustee will use your assets to care for your dependents in the manner you specify, and you don’t have to worry about these assets being misused or stolen by people that don’t have your heirs’ best interests in mind.
Whether you have a huge fortune or a small nest egg, you should ensure that your assets will be used to care for your needs in the event you are injured, disabled or otherwise incapacitated. Establishing a trust now will cover your medical costs and other living expenses that insurance and disability benefits won’t cover. Anything left after you die will then be distributed among your heirs as you wish.