Trusts in Michigan: Do You Need One?
What Is a Trust?
A trust is a legal instrument that allows you to place your assets--such as money, property, or investments--into a "container" managed under rules you create. You appoint a trustee, often yourself at first, to oversee the trust and manage those assets for the benefit of your chosen beneficiaries.
Unlike a will, which only takes effect after you pass away, a trust can begin working while you're alive.
Wills vs. Trusts: What's the Difference?
A common question I hear is: "Do I need a will or a trust?" The answer depends on your goals.
- A will is a set of instructions that goes through probate court, where a judge generally oversees the process.
- A trust can allow assets to pass outside of probate, often saving time, money, and stress.
- Trusts can also provide privacy--unlike probate, which is a public process.
For many Michigan families, a will is a great starting point. For others--especially those with young children, multiple properties, or privacy concerns--a trust may be the better option.
Why Create a Trust?
There are several reasons why creating a trust may make sense:
- To avoid probate and keep matters private.
- To provide ongoing management of assets for minor children or family members.
- To ensure smooth and efficient distribution of assets.
- To protect beneficiaries who may not be ready or able to manage an inheritance.
Choosing the Right Tool for Your Family
Estate planning is not one-size-fits-all. A trust is simply one of the tools available to help you achieve your goals. Some people benefit most from a will, while others need the flexibility and protection of a trust.
As an estate planning attorney in Michigan, my job is to help you understand your options and choose the right plan for your unique situation.
Take the First Step Today
If you've been wondering whether you need a trust, now is the time to explore your options. Even small steps today can prevent stress and confusion for your loved ones later.
