5 Benefits of a Living Trust
You’ve worked so hard to accumulate assets over the years. But what will happen to them when you pass away? Considering the many benefits of a living trust, a trust just might be what you need to safeguard your goods once you’re gone.
The majority of people think planning an estate is all about death. But it’s really more about controlling what’s yours — both now and in the future.
Still not sure whether a trust or a will is right for your situation? Here’s a rundown of the five main benefits of a living trust and why you might prefer it in the years ahead.
Let’s dig in!
1. Benefits of a Living Trust Include Protection
One of the main reasons to choose a trust is that you can dictate when certain monetary disbursements from the trust are made after you pass away.
In this way, if you have a son who’s not the best money manager in the world, have no fear!
You can arrange for him to get predetermined amounts of money at times you choose ahead of time. In that way, he won’t be tempted to get that Miata.
Alternatively, if you have a fairly responsible beneficiary, you can have all of your property transferred to him at once.
Either way, you get to choose how your money is distributed when you die. And since it’s your money, isn’t that the way it should be?
Another one of the major benefits of a living trust?
That’s enough to make anyone who’s been through the probate process before screaming for joy.
Probate is essentially the process where a will gets proved, or validated, in court. The purpose is to make certain that a given will is indeed a person’s last will and testament.
But probate can be a long, arduous process.
That’s what’s so great about a trust. You get to avoid probate because your trust will transfer your valuables to your beneficiary in an efficient and seamless manner.
How does it all work?
The trustee whom the trust names will simply oversee the process of the asset transfer. Then, once everything has been transferred, your trust will be dissolved.
It’s that easy.
And you don’t need probate because there isn’t a need to pay any taxes or debts owed on your property, appraise your assets or complete the inventory process.
If you don’t want the whole world to know your financial business (and face it: Who does?), then you can’t go wrong with a trust.
Living trusts, unlike wills, do not legally have to be publicized after their creators have died, as a trust does not go to your local probate court.
On the contrary, a will has to be filed with the court once the will creator has passed away. So anyone can see it via the public records.
If you suddenly become incapacitated or ill, your finances is the last thing you’ll have to worry about if you have a trust.
And that’s a huge plus no matter your net worth.
If you fall ill, your personally selected trustee will take over your finances and make sure that nothing falls through the cracks.
No court intervention is needed.
Meanwhile, if you have created a will but no durable power of attorney, a court-appointed person will have to assume control of your financial matters. This person will need to receive court approval for property sales and expenses, for example.
5. Financial Savings
Not only is the probate process long but also it can be expensive.
Since a trust helps with avoiding probate, it will mean savings for your estate when you pass away.
And that’s like icing on the cake for your beneficiaries.
How We Can Help
We can help you to set up a living trust that will meet you and your loved ones’ needs long-term in the event of your death.
Get in touch with us to learn more about the benefits of a living trust and whether a trust is right for your financial situation.