If you are currently going through the process of estate planning, then you have likely been told at one point or another that you should consider a living trust rather than relying on just a will. However, if you are unfamiliar with living trusts, you may be uncertain about what they are and the benefits they provide. Essentially, a living trust is a legal arrangement in which an individual transfers their assets into a trust where it is held for the benefit of the trust creator during their lifetime. Upon the trust creator's death, the assets of the trust are transferred to the designated beneficiaries by the person the trust creator chose to manage the trust after their passing. Here are just a few of the benefits of choosing a living trust.
Trusts Avoid Probate Court
One of the primary benefits of a living trust is that trusts avoid probate, the court-supervised process of distributing a deceased person's assets. Even if you have a will, your estate will likely still have to go through probate, which can be a lengthy and costly process that can put additional stress on your loved-ones during an already difficult time. With a trust, your designated successor trustee will distribute the assets in the trust according to your instructions without court intervention.
Your Affairs are Taken Care of Should You Fall Ill
A living trust can also help to protect you during your lifetime should you fall ill or become otherwise incapacitated. Through your trust you can prearrange who you would like to be in charge of your affairs and making majors decisions for you should you become incapacitated, ensuring that someone you trust is looking out for you, allowing you to avoid a court-appointed conservatorship.
There are a variety of benefits a living trust can provide, which is why they are starting to become so common. Contact us to learn more about living trusts and the options available to you for estate planning.