Maybe you call it a living trust. Or maybe you call it a revocable trust. Either way, the benefits remain the same.
It is up to you to decide if a living trust is the right decision for you and your family. Some people find that this is exactly what they are looking for, as it provides a high level of top quality benefits.
As you create or adjust your estate plan, you need to be well aware of every option. This includes a living trust, as it could be the one document that puts you in a better position moving forward.
Tip: not only does a living trust give you peace of mind right now, but it will work in favor of your loved ones once you pass on.
Now that you have some basic information regarding a living trust, it’s time to learn more about the benefits. It is these that will help you decide what to do next:
- Probate Avoidance
If you are doing everything you can to help your estate avoid probate, it’s important to consider a living trust.
With this, any asset held by the trust will not be subject to the probate process upon your death. As a result, your loved ones will receive more of your estate.
Furthermore, and just as important, is the fact that your family can avoid a long, drawn out probate process that often costs a lot of money.
- Money Savings
Many people look at a living trust and realize that it will benefit their heirs when they pass on. However, they don’t realize that it is actually going to save them quite a bit of money as well.
There is no denying the fact that a living trust will cost more to create than a will. But as long as you are comfortable spending the money now, you know it will be saved, plus some, in the future.
It’s hard to look at it like this, but a living trust will absolutely save your estate money when you pass on.
Note: a living trust also has a better chance of standing strong in the event of a contest.
- More Privacy
Are you a private person? Do you worry that others will learn about your personal finances upon your death?
If you opt for a will, this may be exactly what happens. But if you decide on a living trust, you can add in a layer of privacy.
A living trust is not made public upon your death, meaning that your estate will be distributed in private. This is not the same with a will, as each and every transaction becomes public record.
Even if you aren’t that excited about the other benefits of a living trust, the privacy factor may be enough for you to learn more.
Are these the only benefits? Definitely not. While these may be the top benefits of a living trust, there are many others you are sure to come across as you begin the planning process.
The one thing you need to remember is that a living trust does not just provide you benefits now. It also does the same for your loved ones after you have passed. In other words, you need to be thinking about the future at all times.
What Now?
Now that you have a clear idea of the benefits associated with a living trust, you need to answer this question: what should I do next?
While you can continue to learn more, at some point you need to make up your mind as to what your estate plan should entail.
If you have any questions about creating a living trust, don’t hesitate to reach out to our law firm. We can help with the following:
- Answer your questions regarding a living trust.
- Provide you with advice based on your current situation and future goals.
- Help you make decisions that will put you in a better frame of mind.
Estate planning is never easy, but when you take the right approach it isn’t nearly as stressful.
If you think a living trust is the answer, there is no better time than now to learn more. What are you waiting for?
- The Questions of Estate Planning, Part 6: Why - January 6, 2020
- The Questions of Estate Planning, Part 5: How - January 2, 2020
- The Questions of Estate Planning, Part 4: Where - December 30, 2019
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