Do I need a trust?” This is a common question I am asked when meeting with a client who is unfamiliar to estate planning. My usual response is, “It depends.” It depends on the client’s intentions or wishes, the client’s goals and concerns, the types of assets the client has, the age/maturity of client’s beneficiaries and whether there is a high risk of conflict.
Generally, a trust is beneficial for anyone who owns real property, has liquid assets of cumulative value of $100K or more and growing, has children or beneficiaries, has children or beneficiaries who have disabilities or are minors and/or children or beneficiaries who are not mature or responsible.
A trust is necessary for anyone who wants to prepare for incapacity, ensure a smooth transition of wealth, avoid probate, reduce conflict between the beneficiaries and reduce potential estate taxes.
A trust is a very important and flexible tool that can assist you throughout life and that extends through death.
Please understand that there are many different types of trusts. For the purposes of this article, consider revocable trusts or passthrough trusts, generally. You will want to meet with an estate planning attorney to see if a trust is suitable for you.
YIM & YEMPUKA LAW FIRM
2054 S. Beretania St., Honolulu, HI 96826
808-524-0251 | yimandyempukulaw.com
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