At What Net Worth Do I Need a Trust When Estate Planning?

Are you stuck in your estate planning process?

A common question we get about estate planning is, ‘At what net worth do I need a trust?’ Many people assume that estate planning is for extremely wealthy people. But, while higher assets do make it more complicated, nearly everyone can benefit from a well-crafted plan. While we’ve covered the differences between wills and trusts before, we’d like to talk a little more about why you should establish a trust.

But first… at what net worth do I need a trust?

It’s difficult to pinpoint exactly what net worth warrants a trust. But, as a general rule, if your assets are valued over $100,000, you should seriously consider one. Furthermore, if you want to be absolutely certain that your estate is distributed according to your wishes, you need a trust. Without one, your family may be forced to attend probate court and lengthy proceedings could tie your assets up for months.

What are the benefits of a trust?

1. Control

As we stated earlier, a trust gives you much greater control over your assets. A will indicates how you’d like your assets used when you pass. A trust, on the other hand, is a legal framework that ensures your assets are used exactly as you wish. By avoiding probate court, your heirs don’t have to bicker, battle, or wait for your assets to be distributed.

2. Privacy

When asking yourself, ‘at what net worth do I need a trust?’ you’ll also want to consider your family’s privacy. Living trusts are private documents that keep your net worth private. If you’re relying on a will to distribute your assets, you’re guaranteeing that those details enter the public record.

When you’re estate planning, your goal is to leave your family as much of your wealth as possible.

3. Savings

With a living trust, you’re able to better ensure that your assets are shielded from lawsuits, creditors, and debt collectors. Additionally, some trusts can be used to reduce your tax burden. Because of this, estate planning is about creating a legal roadmap to preserve your wealth, keep it private, and distribute it fairly.

Want help creating a living trust?

At Wiser Financial Group, our experts will work closely with you and your estate attorney to create a trust that protects your assets. We can help you reduce the liability of estate taxes, avoid probate court, and ensure that your wealth is distributed according to your wishes. So, if you’re still not sure if you need a trust or if you have questions about the process, please reach out to us today.

Are you ready to get started?

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