Traditional Wills vs. Trusts
A will typically results in a lump sum inheritance to heirs.
Large sums, especially for young heirs, can lead to poor financial decisions.
The Case for Trusts
A trust can distribute inheritance in stages rather than all at once.
Protects assets from divorce, lawsuits, bankruptcy, IRS claims, and creditors.
Common Distribution Plan Example
Immediate payout (e.g., 20%) at age 25 or older.
Remaining funds are distributed in stages every five years (e.g., 1/4, 1/3, 1/2, final balance).
Funds can be invested, allowing for financial growth over time.
Access to Funds
Regular income payments can be provided from the trust.
Heirs can access the principal only in cases of absolute need.
Key Benefits
Ensures heirs have time to develop financial responsibility.
Provides long-term financial security and asset protection.
This video is for informational purposes only. As always please get professional help before making decision on how to protect your assets.
Share this post