Are you beginning to wonder if a living trust is the perfect estate planning tool? Have you come to find that it may provide you with more benefits than a will? Are you willing to at least learn more about this strategy?
With so many benefits of a living trust, a growing number of people are looking into everything this can do for them (and their family).
Before we discuss the top reasons to create a living trust, let’s examine a basic definition as shared by Investopedia:
“A living trust is a type of trust created during a person’s lifetime. It’s designed to allow for the easy transfer of the trust creator or settlor’s assets, while bypassing the often complex and expensive legal process of probate. Living trust agreements designate a trustee who holds legal possession of assets and property that flow into the trust.”
There is a lot to like in that definition alone. With that in mind, let’s examine some of the biggest benefits of this strategy:
1. Avoid Probate
As noted above, a living trust allows your estate to bypass probate upon your death, thus saving your loved ones time and money.
With a will, there is no way of preventing probate. Conversely, with a living trust, this isn’t required by law. Instead, your trustee will distribute assets based on your instructions.
2. Save Money
This can be difficult to understand, because it typically costs more to create a living trust than a will.
However, depending on your situation, a living trust may save you and your loved ones money over the long run.
Think about this: with a will, the probate process can eat into the assets you leave behind. But with a living trust, this isn’t a concern. Instead, everything you want to pass on will be passed on in a timely manner.
Don’t get hung up on the upfront cost of creating a living trust. Instead, look into the future to get a better idea of how it can save you and your family money.
3. A High Level of Privacy
One of the major concerns with a will is that it becomes public record upon your death. This allows anyone to keep track of all the transactions associated with your estate plan.
If you’re concerned about this, you’ll want to use a living trust. This is not made public, with your estate distributed in 100 percent privacy.
This is important to some people, but not to others. If privacy is on your mind and you’re creating an estate plan, you don’t want to use a will.
These are just a handful of the many reasons to create a living trust. As you learn more and discuss your options with your legal team, you may come to realize that this is the right choice.
If you’re seeking more information on living trusts and other estate planning strategies, sign up to attend one of our free seminars. It’s here that you can learn more, ask questions, and get a better idea of what you should and shouldn’t be doing.
- Special Needs Planning and Direct Gifting: Take Caution - August 6, 2020
- Estate Planning With Your Spouse: Ask These Questions - August 4, 2020
- How to Know if Your Estate Plan Requires Attention - August 3, 2020