Do you own real estate, have personal belongings valued at a minimum of $50,000 or own several cars? If so, there is a good chance that you and your loved ones could benefit from trust planning in Sacramento, CA.
While trusts are a very safe, practical and effective way to manage your estate, many people avoid setting up trusts because they assume they are not rich enough, or they think trusts are too complicated for them. Unfortunately, people who think that way are missing out on many different benefits. To that end, here is a closer look at five common myths about trust planning in Sacramento, CA:
- Trusts are only for the very wealthy: As mentioned above, you certainly do not need to be a member of the top one percent to benefit from having a trust. In fact, you might not even need to own any real estate at all! If you own even a few considerably valuable belongings and want to keep your investments safe, setting up a trust could help you do so. Before you write off trusts as being only for the rich, meet with a trusted financial advisor to learn more.
- Trusts are too convoluted: Trusts can come with many different stipulations, requirements and schedules. But the beauty of it all is that, as the trust owner, you get to decide on what, if any, conditions and rules you put on your trust. Once you realize that you hold the power, trusts suddenly start to look a lot more simple.
- Trusts are only for people with heirs: Many trusts are set up specifically so that a person’s loved ones can safely and legally inherit their wealth and belongings. But there is also such a thing as a personal trust, in which the owner (or grantor) is also the sole beneficiary. If you are not looking to transfer any of your wealth, but still want an effective way to manage your estate, then trust planning in Sacramento, CA might be right for you.
- Trusts are difficult to access and change: As we have mentioned before, some trusts can have rules and stipulations that make them difficult to change. But as we have also mentioned, those rules all come from you, the grantor, and you have the power to change them. For example, if you want to make sure your grandchildren use their inheritance to pay for college, you can make it so they cannot change that. But if you change your mind, you have the power to change the trust.
- Setting up a trust is more money and time than it’s worth: Yes, setting up a trust does take some time and thought, and you will have to pay your financial advisor. But once you put in the effort and money, you will be rewarded with the peace of mind that comes with having your affairs completely in order. We think that is well worth the cost.
To learn more about the benefits of trust planning in Sacramento, CA, please get in touch with Yoder & Co., CPA today.