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.
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 wonít always get to keep
your hard-earned wealth, itís essential to start thinking about protecting it.
Thatís where trusts come in. If youíre 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,
youíve likely been thinking about how youíd like your assets to be distributed
when you pass. Trusts can often provide a greater level of control than Wills
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
youíre thinking about when youíre settling into retirement. More than likely,
youíre 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
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
Ensure Fair Asset Division
Assets arenít 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
Plan for the Worst
We all know we will reach the end of our
lives; we just donít 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 thereís 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
About the Authors
Early Lifestyle appeals to a different
kind of person Ė the person who prizes their
independence, values their time, and who doesnít
want to mindlessly follow the crowd.
Retire Early Lifestyle Blog
About Billy & Akaisha