Most estate planning lawyers will try to push you into creating a trust, but the truth is that the use of beneficiary designations and/or wills can sometimes get the job done just as well as a trust would. Additionally, trusts are usually more expensive than Wills and beneficiary designations, making trust formation a big purchase most individuals and therefore, should not be undertaken lightly. That said, there are several circumstances in which creating a trust for your Missouri estate would be the most beneficial thing to do. Forbes weighs the pros and cons of creating a trust so you can make a more informed decision.
One of the first factors you want to consider is how much of your estate you can shield from probate. Probate is costly and can take several months to several years to complete. For many, this alone is reason enough to create a trust. However, before you invest in a trust, consider how many of your assets are actually subject to probate. For instance, jointly owned assets with rights of survivorship such as annuities, life insurance policies and retirement accounts are not subject to probate. Nor are bank or investment accounts for which you filled out a "payable on death" or "transfer on death" form. To access these accounts, all your beneficiaries would have to do is show up at the institution with your death certificate and a valid form of identification. If many of your assets are already accounted for, a trust may be a frivolous expenditure.
