Estate planning is indeed important especially when it comes to making choices regarding your wealth once you are gone. Although, wills are one of the more familiar ways, a living trust provides several advantages. However, it is essential to consult an attorney before deciding so that they may advise whether creating a living trust would be in the best interest of the client. So, let’s go through the main benefits of the living trust to understand this issue better.
1. Avoiding Probate: Simplified Process
Probate is the legal process that establishes the authenticity of a will and the administration of property among intended heirs. It can be tiresome, costly, and even do so in the open. A living trust does not go through probate at all. The assets in the trust transfer to beneficiaries at your death, and this is very fast compared to having to go through the legal processes involved in probate.
2. Tackling the Issue of Control in the Face of Incapacity
Life throws curveballs. In case of a disability arising from illness or physical disability, a living trust makes it possible to have your property dealt with as per your wish. You appoint an individual to take responsibility for the management of the trust property during this difficult time to facilitate proper management of your financial affairs.
3. Flexibility of Distribution of Assets
A will specifies a distribution of property to the beneficiaries during your demise that takes place only once. A living trust, though, has more leeway for changes. It means that there can be certain requirements that have to be met to get access to the distribution, for instance, achieving a particular age or finishing education levels. This enables you to undertake the process in a responsible way and make sure that your beneficiaries get the inheritance at the right time.
4. The right to privacy in estate matters
Probate is not private, hence everyone can view the details of your will and the worth of your property. A living trust, however, is classified as private. It is prepared and available to only the named trustee and the beneficiaries of the trust.
Conclusion
A living trust can also offer a more efficient and less public method of passing the estate to the heirs. If you have concerns over probate, being able to control assets during incapacitation, or issues with the family, it might be valuable to meet with an estate planning attorney and discuss a living trust.
