The Naked Truth: Why Trusts Beat Wills for Protecting Assets

Setting up an estate plan can feel about as enjoyable as a root canal. But having a rock-solid plan in place is the best way to safeguard assets and provide for loved ones when you're gone. So which is better - a trust or an old-fashioned will? As shared recently on The Entreprenudist Podcast, there are good reasons trusts may provide superior protection.

Like a Sturdy Trellis, Trusts Support Your Estates Future Growth

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Trusts offer benefits wills can't match. Wills guarantee probate, the court-supervised process for distributing someone's estate after they die. Probate is time-consuming and costly, potentially chewing through a significant chunk of assets. But properly structured trusts allow you to sidestep this legal quagmire altogether.

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Trusts also help you keep your financial affairs private, unlike wills. Wills become public record when submitted to probate court, with details published in local newspapers. For business owners and high-net-worth individuals, maintaining privacy around these matters is often quite important. Trusts allow you to settle affairs discreetly, without airing dirty laundry.

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Like a solid foundation supports the walls of a building, thoughtfully constructed trusts support the future growth of your hard-earned assets. They help ensure resources are transferred smoothly and cost-effectively to beneficiaries of your choosing while avoiding unnecessary publicity.

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Stay Agile Like a Gymnast with Proper Trust Funding

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But simply having a trust isn't enough. Trusts must be adequately funded to deliver their benefits. This means retitling assets like bank accounts, investments, and real estate in the trust's name during your lifetime. Or depending on which state you situs your trust, just properly assign the items.

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Think of proper trust funding as akin to a gymnast building strength and flexibility through tireless training. When competition day arrives, years of preparation allow the gymnast to perform astonishing feats of agility with grace and power. Similarly, keeping assets in a reactive posture within your trust sets up your estate to execute complex asset transfers with ease when the time comes.

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But leave too many assets outside your trust, and your estate loses agility, like a gymnast failing to stick the landing. The higher the value of assets left unfunded, the more likely your living trust will be ineffective, thrusting your estate into slow and costly probate proceedings.

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Stay Nimble with Regular Trust Reviews

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Finally, revisiting trust arrangements annually is key to keeping your estate plan nimble. Life brings many changes - new assets, marriages, grandchildren - that could necessitate trust alterations. Think of occasional trust reviews like a beachgoer shaking out their towel after a windy day. Regular shakes keep the towel clean and centered in place. Periodic trust check-ins allow adjustments so your plan stays updated and centered on your wishes.

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The Bottom Line

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When winds of change eventually blow, those with unprotected assets or outdated plans often see years of hard work scattered. Don’t leave your legacy vulnerable to legal wrangling or public spectacle. Instead, implement a sturdy trust, keep it funded, and review it routinely. Taking these simple steps today will grant your estate lasting shelter and flexibility down the road.

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#trusts #wills #estateplanning #successionplanning #probate

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For More Info Text “NoTax24” to 904-822-4262

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About The Author…

Randolph Love III, is the Founder and President of, ShieldWolf Strongholds, a Fractional CFO company that specializes in providing Business and Franchise Owners with all of the perks and benefits of having a full time Chief Financial Officer and Business Succession Planner, but for a fraction of the price.? He is a Partner and Consultant with The Franchise Consulting Company; the largest American owned franchise consulting company in the world. He is the Author of the forthcoming Financial Literacy book, "The Miracle Money Vehicle: How To Make Money Make Babies;" which gives individuals and business owners a step by step guide on what they need to do to have the option to retire, or exit their current position in less than 5-10 years, with properly structured, and funded Trusts and Tax Strategies.? Also, he is the host of, "The Entreprenudist Podcast: The Place To Hear Real Entrepreneurs and Business Owners BARE IT ALL;" ranked in the TOP 10% of podcasts for Business Owners and Entrepreneurs by ListenNotes.com.