A revocable living trust can be one of the very best devices for passing assets on to your loved ones some day. Read through the following four benefits of having a living trust to see if it could be right for you. And please contact us if you’d like more information!
A living trust starts providing benefits to you as soon as it is signed. A will, on the other hand, doesn’t take effect until after you pass away. For example, a living trust can identify who you want to make decisions for you should you become incapacitated. There are other advantages you can enjoy while you are still living as well, which will be based on your specific situation and your assets.
Are your beneficiaries old enough and mature enough to make responsible financial decisions with their inheritances? Even if you answered yes, would you like to be able to provide a layer of asset protection to your beneficiaries to shield them against a bad marriage or divorce, creditors, or potential lawsuits? These benefits may be obtained through a properly drafted living trust that insulates beneficiaries from the effects of youth, unwise spending habits, financial irresponsibility, or potential creditors and predators.
One of the biggest benefits for your loved ones when you choose a living trust is that you may be able to avoid probate, which can be expensive, time-consuming, and is public in nature. With just a traditional will, your estate will still have to go through the probate process. When funded properly, however, your trust can avoid this step.
After your death, a living trust does not become public record. This means that assets owned in trust can remain private, which many families prefer. On the other hand, if you have only a will in place, assets owned in your individual name will become part of a public probate proceeding.
While setting up a living trust is a bit more complicated at first, it is actually a fairly straightforward process when you have a qualified estate planning attorney to help you. If you have any questions about what needs to be done, or where to start, please contact us to set up an appointment.