Clients can have many opinions about why they do not want to open a trust for their estate or family member.  Some think that trusts add a complication to the process, when in reality trusts offer the ability to leave an estate with any limitations that the client would like.  Still, there are a few misconceptions.  An example being the estate of Philip Seymour Hoffman, of which had no trusts in place and ended up having to pay an enormous estate tax.

Philip Seymour Hoffman was determined not to allow his children to become, “rich, entitled, trust fund kids” therefore  refusing to draw up a trust for his children or his estate.  His estate ended up being awarded to the Mother of his children with little or no direction on passing on his estate to his children.  He could have had a trust with limitations on withdrawal, age, situations, and even that they have a job.

Another example is Michael Jackson’s estate worth over $600 million.  Michael Jackson had did have a trust, but failed to fund it before he passed.  Jackson passed in June 2009 and his estate is still open.