A living trust isn’t the right estate planning tool for everyone, but neglecting to learn more could cause you to miss out on something that could improve your situation now and in the future.
With a living trust, you have the legal authority to move assets into your trust during your lifetime. Then, upon your death, the assets are transferred to your beneficiaries.
Before deciding in favor of a living trust, here are some benefits that provide background information on why it may be a good decision:
- The assets in a living trust are not subject to probate: If you use a will as your primary estate planning tool, your assets will go through the probate process upon your death. This is both timely and expensive, which isn’t what your loved ones need during a difficult time. A living trust avoids probate, which makes for a more efficient distribution of assets.
- It can help while you’re alive: For instance, should you suffer an illness that leaves you incapacitated, your trustee can step in without delay to manage your affairs. The best part of this is that you know someone you trust is managing your affairs, as opposed to the person the court appoints.
- Privacy protection: Many people don’t realize that a will is made public upon their death, meaning that anyone can review the details and all transactions associated with it. You don’t have to concern yourself with this when you have a living trust, as it’s never made public. This is important to some, but not others. Only you know how big of a deal privacy is to you.
These are among the primary benefits of a living trust. If they pique your interest, it may be time to consider adding this to your estate plan. It will take some reworking, but once you have a trust in place you’ll feel better about your situation and everything the future will bring.
Don’t let the cost and time associated with creating a living trust slow you down. If you want to take advantage of the benefits, move forward with creating a trust in the manner you best see fit.
