A living trust is a legal document in which your assets are held by another party for your benefit during life after which the trustee distributes them to your beneficiaries. These legal papers take the place of the traditional "will" that is only enacted following death. There are many reasons to decide to have a living trust. Here is a list of several advantages.
- Many persons choose a living trust to protect themselves should they become incapacitated during their life. This is an important consideration in case you become ill or injured to the point where it is difficult or impossible to care for your finances and their applications. Estate Planning.com maintains that this consideration is a primary reason for choosing a trust over a will.
- A living trust is a private document that keeps your personal information safe. This means your assets and handling of them are not placed in the public eye. This is an advantage over a will that becomes a public record that anyone can access.
- Experts like those at The Balance agree that a living trust document generally holds up better under contention than a will. They are not subject to probate, a process that seeks to prove legality in court. Legal wills, however, do undergo probate which can tie up distribution of the deceased's properties for a long time and is costly.
- A living trust can place your assets in the hands of investment experts. According to The American Bar Association, you can name anyone as your trustee. Your chosen appointee can work with an investment specialist to design a program which suits for your particular situation. This professional management helps free you up to enjoy your retirement without the worry of financial planning.
Consider all the advantages of a living trust before you decide on how to legally handle your assets. Contact us for further information on estate planning and legal considerations.