When should you make a living trust?
Good question. I’d say when the following three situations (or similar ones) have happened: You have minor children: If you have any minor children, or if you expect to have them in the near future, you should definitely set up a living trust. Your children can't handle the responsibility of handling your affairs until they're much older (and legally capable of doing so). A living trust can help ensure that your children will be taken care of by someone in the event that something happens to you—for example, if you were in an accident or became ill and couldn't make decisions for yourself anymore. You have substantial assets: While the exact amount will vary depending on where you live, if you have substantial assets to divide after your death, a living trust can help protect those assets from being reduced by inheritance taxes. It will also ensure that those assets go to the people they're intended to go to. If these assets include business interests or property ...