You don't need to be a millionaire with lots of assets to start a trust.
There are lots of different kinds of trusts and they can serve all kinds of different purposes. This is an often-confusing topic for that reason. I hope to resolve some of that in Episode 13 as we tackle some of the differences in trusts – and talk about whether a trust is a good option for you – whether it’s for long term planning for an older adult or someone with a special need or just a vehicle that you want to avoid probate.
What is probate?
Probate is court-administered estate administration. That usually involves a will, and you can even have trusts in wills, believe it or not. I told you this can be confusing stuff.
First – What is trust and how does it work?
Trusts are created under the law where you live. Tennessee has a Uniform Trust Code that governs such trusts which is part of our state laws. Other states have similar laws in place – and those can vary from state-to-state which you need to be very aware of.
If you have a trust that is created in Tennessee, and you move to Georgia, well – unless you change the controlling law of that trust – it is going to continue to be controlled by Tennessee law. It works the same way around… so if you’re one of those folks that has moved here to Tennessee and you had a trust created in another state – your trust will continue to be governed by that state’s rules, unless you amend the trust. That’s something you want to think carefully about because that can get extremely complicated – especially if it involves a complex trust. I may tackle the details of more complicated trusts in future episodes but today – we are just talking about trusts generally.
There are all kinds of trusts. But – don’t cross trusts off the list if you’re not a millionaire with a lot of assets. It still may be a good option for you. And that’s where I am going to focus today’s discussion because that’s where most of us find ourselves, right. I think that’s the most practical for our discussion on trusts and its where I find most of my clients making decisions in favor of trusts. Either separately created trusts or those trusts that are created inside Last Will and Testaments. Are you confused yet? I hope not. We are going to tackle that topic next and I hope to give you a better handle on those simpler trusts and what they may be able to help you with as you plan for your future.

Join the Boomer Time community! Learn more at ⁠⁠⁠NancyCogar.com⁠⁠⁠, subscribe to my newsletter and gain helpful resources to help you or your loved one navigate aging with confidence.

Ver todos los episodios