Thinking about putting your assets into a trust as part of your estate planning, but unsure if you want them to stay in that trust for good? If so, you’re in luck. You can make a temporary trust, or a limited-term trust.
Why would you want to do this? Some people do it if they work in a profession that puts them at a higher risk of getting sued. A common example is a doctor who thinks he or she may get sued over mistakes made at work. To make sure that the family does not lose all of their personal wealth, the doctor can transfer it to the trust so that he or she does not actually own it.
You could also use a trust to put the money aside when your heir is a minor. Maybe they’re just 15, and you don’t want to leave them any money directly. You’re not sure how they would use it. You can put it in a trust for a time, and then when they come of age, you can take it back out and write into your will that they get the money when you pass away.
Of course, you could also just set up a trust that stipulates that it pays out to the heir at or after the age of 18. Then, no matter how old they are when you pass away, the trust ensures that your wishes are followed, even though you never took it back out.
You have a lot to think about with estate planning, so be sure you carefully consider all of your options.