If you have yet to consider a trust as part of your estate plan, now may be the time to change your ways. This is not the right legal setup for everybody, but it is something that has helped millions of people better manage their estate plan.
A living trust should not be overlooked. It’s not always the best idea, but there is never a good reason to ignore the finer details, including the benefits. Once you review this type of legal arrangement, you can decide if it is right for you, your family, your assets, and your estate plan as a whole.
So, what are the benefits? This depends on who you are and what you are trying to accomplish. Even so, all trusts share the same level of basic benefits. Here are a few details to consider:
Did you know that any assets kept within a trust will avoid the probate process? This puts your family at an advantage once you pass on, because they don’t have to spend time going through probate. Better yet, they don’t have to spend the money associated with this.
A living trust avoids probate altogether, meaning that your assets will be distributed sooner rather than later.
Tip: this only holds true for assets held in the trust.
Long Term Savings
It can be difficult to wrap your head around the idea of creating a living trust, as this costs more than a will. But even though you are paying more upfront, you can make out in the long run.
Your goal is simple: to save your estate money at the time of your death. If you have a will, you cannot expect this to happen. With a living trust, however, your beneficiaries will soon realize the cost savings.
Tip: don’t decide in favor of a living trust until you are sure that it is financially beneficial.
As a private person, you may find it challenging to think about what will happen to your estate once you pass on. Do you really want everybody to know where your assets are going, who is receiving what, and what everything is worth?
A living trust can protect against this, and here is how: unlike a will, a living trust is not a public document. This means that your estate is distributed in private. With a will, everything is public record. This means that outsiders can see every transaction.
Tip: only the assets you keep in a living trust receive this level of protection.
Now that you are familiar with the benefits of trusts, it is time to decide what to do next. Will you create one of these? Will you still opt for a will? Again, the choice is yours. But if you are on the fence, here are some questions to answer:
- Are you comfortable with the idea of using a living trust to hold some of your assets while you are alive?
- Are you okay with the idea of spending more to create a living trust, knowing that it will benefit your family in the future?
- Do you know how to create a living trust?
If you answer these questions, you will find yourself closer than ever to making a decision. For those people who are unsure of what to do next, consulting with an attorney is always a good idea. A legal professional can explain trusts, including the pros and cons for somebody in your position.
Those who want to learn more can download our free report entitled “Dangers of Do-It-Yourself Wills and Living Trusts.”
As the name suggests, this report provides information on wills and living trusts, with an eye towards the do-it-yourself variety.
The last thing you want to do is make a mistake when creating a will or trust. There is a lot that goes into this, so you need to be careful of every decision you make. This report explains what to expect along the way, including the reasons to hire an experienced attorney.
Now that you know more about the benefits of trusts, you can decide if this is something to consider at the present time.
- What You Need to Know About SECURE Act 2.0 - March 30, 2023
- Show Your Love by Creating an Estate Plan - March 15, 2023
- What Happens When You Don’t Trust Your Trustee – Part II - March 7, 2023
By Appointment Only
All Mail Should be Directed to the Middleton Address