Continuing Trusts


When planning your estate, you’ll need to decide whether you want to leave your assets to your chosen beneficiaries outright or in a trust for them. There are many reasons why setting up a trust instead of letting property pass outright to one or more of your chosen beneficiaries might be the wiser choice. Below are ten of the most common reasons we encounter in our practice:

  • to help provide financial stability for very young beneficiaries
  • to help provide financial stability for elderly beneficiaries
  • to provide supplemental assistance for a beneficiary with special needs but doesn’t disqualify him or her from receiving public assistance benefits
  • to protect spendthrift or financially unskilled beneficiaries from going through their
    inheritance too quickly
  • to protect kind, generous, or gullible beneficiaries from people who might take advantage of them
  • to protect married beneficiaries from losing their inheritance in a divorce
  • to protect successful beneficiaries from losing their inheritance in a lawsuit
  • to provide for your spouse during his or her lifetime but preserve assets for your children from a prior marriage
  • to maximize the amount of retirement benefits your beneficiaries will receive
  • to defer payment of certain taxes until your spouse dies so (s)he has more to live on

There are some down sides to establishing a continuing trust, including set up costs, trustadministration costs, and potential tax consequences. We can explain the available options to you, and then help you weigh the pros and cons of establishing continuing trusts, so that you’ll make an informed decision when confronted with this basic but very important estateplanning question.