Setting up an estate plan can present many different considerations as well as stressors, and people often find themselves unsure of which route to take. Some move ahead with wills, while others decide to set up a trust. Moreover, there are a plethora of options on the table with respect to trusts, from special needs trusts to testamentary trusts and living trusts. Some people do not know whether they should set up a revocable trust or an irrevocable trust, and the financial circumstances surrounding a family will vary from one to the next.
First of all, it is imperative for people to carefully analyze their own situation, not only in terms of their finances but the dynamics of their family as well. For example, someone may have a loved one with special needs who requires a considerable amount of care. They may have concerns about this family member’s future, especially when they are no longer around to offer financial as well as emotional support. Sometimes, special needs trusts are ideal for people in this position because they allow a beneficiary to receive government benefits as well as a portion of their loved one’s estate. However, this is not ideal for every family.
With so many different choices, estate planning can feel overwhelming in the initial stages. That said, once someone is able to pinpoint the best type of trust for their family, the process often seems less daunting and can even offer a great deal of emotional relief (not only for the individual who created a trust but their entire family too).