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Do you have to be wealthy to make a trust?

People want to provide for their families. Part of that, unfortunately, includes thinking about what will happen to your family when you are no longer able to care for them. Estate planning is an important part of ensuring your family will be taken care of in the future and is something everyone should think about.

There are many factors that go into estate planning, one of which is the option to create a trust for your family. A common misconception about estate planning is that only super wealthy people can make trusts. However, this is not true. Making a trust can help families of any financial status.

Why would someone make a trust?

Trusts are a more private method of estate planning. A trust is a private document that is not required to be reviewed or approved by a court. People tend to like trusts because their assets can avoid probate and be kept private.

Revocable trusts can also be altered during a person’s lifetime. If you should want to make a different decision regarding your assets, you can make changes to a revocable trust.

Trusts can be used when a person is incapacitated and not necessarily deceased, too. If you can no longer make decisions in good conscious, a trust can help you continue to manage your wealth and ensure your wishes are carried out. You can make sure your children and grandchildren are cared for in an event when you are incapacitated. For example, if you wanted to pay your grandchild’s tuition, a trust can ensure this happens.

Trusts have an inaccurate stereotype of being for the rich and powerful as a means to redistribute their estates, but certain trusts can prove beneficial and useful for average-income people, too.

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