Silent trusts may seem appropriate for trustees wanting to keep beneficiaries in the dark regarding potential assets. Remain cautious, as these trusts have the potential to backfire and create a shift in family dynamics without the oversight of an attorney. You may be interested in becoming familiar with the issues involved in establishing a silent trust if it is one of the estate-planning options you are considering. Familiarizing yourself with the possible downsides of this particular tool can help you make an informed decision about your family’s financial future.
The Secret is Out
As stated before, silent trusts are an estate-planning tool whose existence is unknown to its listed beneficiaries and can be extremely practical when utilized properly. An attorney specializing in probate law will advise you that once one is formulated, it may not remain silent for long. The reason for this is that beneficiaries who are granted access to the trust prior to others may experience apprehension in keeping it silent. They may find it difficult to maintain the secrecy and could inform fellow beneficiaries of its existence.
Silent Trusts are Practical…Sometimes
Every family is different and estate-planning options can vary widely depending on yours. In theory, silent trusts may seem like the way to go when it comes to planning how your estate will be handled after your passing. In order for silent trusts to be effective, an attorney must familiarize him or herself with you and your family. Those who have drafted such a trust have their reasons for keeping it silent. Should you decide to go forth and draft one yourself, you must consider the consequences before moving forward with the process.
Speak with a probate lawyer if you are considering setting up a trust or any other legal stipulation which takes effect following your death. He or she can discuss the drawbacks and benefits of the different types of wealth-management tools available to you. They can assist you with developing a plan that suits your specific needs.
Safeguard Your Family’s Well-Being
There are plenty of issues that need to be considered when deciding whether or not to establish a silent trust. Discuss your estate planning options today by contacting the probate attorneys of McAllen’s Barrera, Sanchez & Associates, P.C. at (956) 287-7555.