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Why you should set up a trust for your child

While it might be hard to think about a day when you are no longer around to provide for your child, there are ways you can ensure their future is secure.

You probably know about creating a will or estate plan. However, there is another way you can make sure your child is cared for. Setting up a trust for your child is an additional method you can use to provide for your child’s future.

Trusts are unique and can be more beneficial than regular wills and estate plans in a few ways:

No probate

One of the main reasons people opt to set up trusts is because they are exempt from probate. The process of probate is often long and can be expensive as a judge determines the validity of your will.

If you have a trust in place, those assets and benefits can be accessed immediately. Any property or other assets included in a trust are not subject to probate so your loved ones will not have to wait to benefit from their inheritance. This means your child can begin using their funds immediately and will not have to go through a period of uncertainty while a judge makes a decision.

Harder to contest

Similar to avoiding probate another positive of trusts is that assets in a trust are not subject to contest like with a will. Wills are often contested and subject to challenges by people who may be unhappy with their status.

Trusts are more difficult to contest wills, thus helping ensure your assets are distributed according to your wishes. This means your child will have more security in knowing their inheritance will go to them and likely won’t be challenged.

Flexibility

Another reason people sometimes decide to set up trusts is because of their flexibility. There a few types of trusts, which allows for much more flexibility in how you distribute your assets.

In a trust you can also specify how the money should be used. For example, you can designate the money be used for higher education or healthcare for your child.

You want what is best for your child and to ensure their future is in good hands. Setting up a trust can help with this when you are no longer around to see to it yourself. There are many other benefits to creating a trust. It will help to educate yourself about all the potential positives for setting up a trust for your child.

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