7 Reasons a Trust Might be Right for Your Family


Do you consider trusts to be instruments of the wealthy? While it is true that many Hawaii residents of means have trusts to protect and pass their wealth, there are a number of reasons why trusts can also be useful for middle-class families.


Here are 7 of them:


1. Control distribution of assets


You wouldn’t hand over your car keys to a child who has had no proper preparation for driving, and chances are you would not want to hand over all your assets to a teenager either. But if both parents die at the same time, the children would inherit all the assets upon their 18th birthdays. A trust allows you to specify how and when you want your children to inherit.


2. Protect assets from creditors


Placing an inheritance in a trust ensures that those assets are protected from your heir’s—or their spouse’s—creditors. Consider a Lifetime Asset Protection Trust.


3. Protect inheritance from spendthrift heirs


Not everyone is good with money. If your heirs fall into that category, you can use a trust to ensure the assets are not frittered away due to spendthrift behavior.


4. Protect inheritance for children of prior marriage


You can use a trust to both provide for your current spouse and any children from a previous marriage.


5. Provide for a special needs heir


Leaving assets outright to an heir with special needs could disqualify them from receiving important government benefits. Leaving those assets in trust bypasses this potential risk.


6. Avoid probate


Assets can pass to heirs without going through probate by using a trust, saving beneficiaries the time and expense of the probate process. Probate is an expensive, public and unnecessary court process you can keep your family from having to deal with.


7. Protect privacy


Once a will is entered into probate, it becomes public; a trust is a private document that will protect your family’s privacy.


This article is a service of the Law Office of Keoni Souza, LLC, an estate planning law firm in Honolulu, Hawaii. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Family Wealth Planning Session, ™ during which you will get more financially organized than you’ve ever been before, and make all the best choices for the people you love. You can begin by contacting our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.


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All information available on this website is for informational purposes only and is not legal advice. You should contact an attorney directly regarding your specific situation. The use of and access to this website or the transmission of information via email or through this website does not create an attorney-client relationship between the Law Office of Keoni Souza, LLC and any users or any other party. Transmission of information via email or through this website may not be secure, therefore confidentiality cannot be assumed.  By using this website or transmitting information via email or this website, the user agrees to this information being collected, stored, or transmitted to a third-party.

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