Oklahoma residents who are working on their estate plan may be interested to learn about some of the common myths surrounding trust and might be interested to learn why those myths are not true. After the recent deaths of comedians Joan Rivers and Robin Williams, many people are learning about the benefits of including trust funds in an estate plan from their examples.
One of the most common misconceptions about trust is that they are financial tools for the rich. In reality, a trust can be included in the estate plan of someone who is not a celebrity or wealthy business owner. Although setting up trusts may cost more upfront, they could ultimately save family members a lot of money by avoiding the need for probate.
Another myth about trusts is that they can only be set up to take effect after a person's death. In fact, a trust can be a useful financial tool that can be used during the benefactor's lifetime as well as after it. For instance, a person working on their estate plan may decide to create a trust that will help to administer their financial affairs in the event of an incapacitating illness.
Trusts can be set up to serve a wide variety of purposes, and a person may want to consult an estate planning attorney when considering the best way to take advantage of the devices. An attorney may be able to look at the details of a person's unique financial situation to determine what type of trusts could be created in order to best serve the needs of the benefactor and their beneficiaries.
Source: Daily Finance, "3 Myths About Trusts That You Can't Afford to Believe", Dan Caplinger, September 20, 2014