Many people utilize individual retirement accounts to save money. An IRA is an important account, and no Arkansas resident wants the funds to go to just anyone in the event that the account holder cannot collect the funds him or herself. Though retirement accounts are typically payable-on-death accounts, rather than naming a person as a beneficiary, some parties may want to use trusts.
For too long, many people have believed the misconception that only wealthy individuals should utilize certain estate planning tools. In particular, numerous Arkansas residents may have believed that trusts are only used by individuals with a considerable amount of money to pass on to their loved ones. However, this planning tool could actually benefit those at any income level and for various reasons.
Probate can be a long and complicated process. In many cases, assets associated with the estate can be diminished through this process due to fees and other expenses. However, trusts could help interested Arkansas residents avoid probate and better protect assets for the future.
It is easy to feel intimidated by aspects of estate planning that go beyond just a will. However, this feeling of intimidation often stems from a lack of information. In fact, many Arkansas residents may feel more willing to utilize trusts as part of their estate plans if they know how to create them.
Many estate planning tools need to have an outside party in charge. For example, Arkansas residents who set up trusts need to appoint trustees or successor trustees to manage those accounts. As a result, it is important that individuals choose the right person, which is not always easy.
It is common for Arkansas residents and those across the country to worry about estate taxes. Though exemptions exist for these taxes, some individuals may need to take specific steps to work toward avoiding these taxes as much as possible. Fortunately, trusts may be able to help.
Throughout life, most Arkansas residents work hard to generate assets that can help them maintain a desired lifestyle and allow them to care for their families. Because it does take such hard work to reach this point, most individuals want to protect their assets as best as possible. Fortunately, trusts can help them do that.
Protecting assets for loved ones and making sure that they have what they need is important to many Arkansas residents. However, it is also common for people to want to help those outside their families by volunteering or donating to charity. For some, donating assets to charity after their passing is something they want to accomplish, and fortunately, trusts can help.
When making important decisions in life, many people can make similar decisions but for vastly different reasons. For example, some Arkansas residents may choose to create trusts as part of their estate plans because they want to protect their assets. On the other hand, others may have minor children who could not manage their inheritances in the event of their parents' passing, and a trust could help. Fortunately, this planning tool is versatile enough to fit most people's needs.
Wanting to ensure that their children are well cared for is a goal that most Arkansas parents have. If parents have a child with special needs, they may have specific concerns about the type of care and the amount of money the child will need in the future. Though government benefits can often help with financial aspects, parents still typically want to leave their children an inheritance, which is where special needs trusts often come into play.