Retire Early Lifestyle
Retirement; like your parents, but way cooler

In 1991 Billy and Akaisha Kaderli retired at the age of 38. Now, into their 4th decade of this financially independent lifestyle, they invite you to take advantage of their wisdom and experience.

5 Reasons Why a Trust Is a Good Idea

 Picture: Natalya Zaritskaya

You can spend your entire life building wealth to enjoy in your retirement years. When the day of retirement finally arrives, you might realize how many expenses can be related to accessing your money, like taxes, penalties, and fees.

Knowing that you won’t always get to keep your hard-earned wealth, it’s essential to start thinking about protecting it. That’s where trusts come in. If you’re not yet convinced that trusts are a good idea, consider the following advantages you might enjoy:

Control Over Your Assets

When you have over $200,000 in assets, having control over them can be essential. As you reach your retirement years, you’ve likely been thinking about how you’d like your assets to be distributed when you pass. Trusts can often provide a greater level of control than Wills alone.

If you click this link https://blakeharrislaw.com/blog/what-is-a-bulletproof-trust, you can learn more about trusts, their purpose, and how to maximize your asset protection and control. In a trust, you can specify how you want your family members to receive your money and at what parts of their lives.  

Avoid Probate Court

Probate court is likely the last thing you’re thinking about when you’re settling into retirement. More than likely, you’re planning new hobbies and traveling. However, death is as guaranteed as life. When you pass, your assets will need to be distributed to the living.

Having a trust often means you can bypass the probate court process. This part of the judicial system oversees wills, estates, and conservatorships. A living trust means your assets can be distributed immediately after death since the trust owns the assets rather than you.

Reduce Your Estate Taxes

Estate taxes can be expensive. However, you might be able to avoid these taxes by putting your assets into a trust. When properly drafted and paired with thorough estate planning, you might enjoy a far less costly tax burden. The federal estate tax exemption in 2023 is $12,920,000. This means that if your assets equal less than this figure, you can avoid estate taxes.

Ensure Fair Asset Division

Assets aren’t always straightforward to divide. You might have no problems dividing up physical money, but businesses, properties, and other valuable assets can be more challenging. Trusts give you more options around the distribution of complex assets. You can leave explicit instructions for what each beneficiary receives.

As you start transitioning to retirement, you might consider setting up a trust for this reason alone. The more plans you have for your assets, the more peace of mind you might enjoy in your golden years.

Plan for the Worst

We all know we will reach the end of our lives; we just don’t know when that will be. If you have many loose ends as you enter retirement, trusts enable you to tidy them up. If you should pass or become unwell unexpectedly, your loved ones will have all the information they need to make informed decisions for you and themselves.

Not everyone needs a trust, but there’s no denying how beneficial they can be for many people. If you see the advantages of these points above, now might be the right time to explore your trust creation options.  

Retire Early Lifestyle appeals to a different kind of person – the person who prizes their independence, values their time, and who doesn’t want to mindlessly follow the crowd.

HOME   Book Store

Retire Early Lifestyle Blog      About Billy & Akaisha Kaderli      Press     Contact     20 Questions     Preferred Links    

Retirement     Country Info     Retiree Interviews      Commentary     REL Videos