You want to take care of your family to the best of your ability. With proper planning, you can continue to care for them even after your time on Earth has passed.
Estate planning can be a tricky and difficult process. If you’re taking smart steps toward securing your inheritance, you’ve probably asked yourself, “Do I need a living trust?”
Here are a few things you need to know about living trusts.
The Basics: Do I Need a Living Trust?
To decide whether or not you should establish a living trust, you first need to understand what it is.
In its most simple definition, a living trust is a trust that becomes effective while the grantor is still alive. Meaning, you have more benefits from a trust while you’re alive than you would receive from a will.
A will appoints an executor to manage your affairs after you die. A living trust appoints someone to manage your property and assets if the grantor becomes incapacitated. This offers you a level of comfort and security that a will does not.
It is wise to prepare for the event that your mental health might incapacitate you before your life ends.
In short, if you have any assets, property, or savings you want to manage responsibly then you should consider establishing a living trust.
You Can Avoid Probate
One of the most obvious benefits of establishing a living trust is that when you die your assets won’t be held up in probate court for months at a time. With a will, the probate court will take months to distribute your assets via your executor.
If you have a living trust, whoever you appoint will pay your debts and then distribute your assets. Your heirs will deeply appreciate your expediency and the avoided court bills.
You Can Retain Some Privacy
In probate court, the details of your estate can be made public. With a living trust, your possessions will be distributed privately.
In the event that you have out-of-state property to be dealt with, a living trust will avoid added legal processes. With a will, the out-of-state property has to go through a separate lengthy probate process in that state. A living trust avoids this expensive, time-consuming, and exposing process.
Many people are able to retire with smart real estate investing. But if you don’t think carefully about your property, it can become a hassle for your heirs when you pass away.
You Can Ensure Security
If you fall ill or are mentally incapacitated for whatever reason, you want everything you’ve worked hard for to be protected.
If you’re asking yourself, “Do I need a living trust?” then you are wisely planning for the future. The only way to truly secure your heir’s inheritance and take care of your family with the least amount of hassle is to consider a living trust.
Just like you wouldn’t complete your own health assessment, be weary of a do it yourself living trust. Both wills and trusts are important legal documents so seek legal counsel when drafting them.
To take care of your family for decades after you’re gone, consider the benefits of a living trust. Your family will remember you fondly for your considerate dedication to their well being.
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