Structuring your finances with estate planning can feel overwhelming for many reasons. However, developing a strategy that carries out your financial wishes and streamlines the process for your family is vital.
Creating a living trust can help you prepare your estate and preserve your privacy while avoiding probate for your loved ones.
What is a living trust?
A living trust is a legal arrangement that you create during your lifetime to safeguard your assets after death. With this estate planning tool, you transfer property ownership to the trust. You designate a person or entity as the trustee to manage your assets for the beneficiaries. It provides an alternate option to a will that bypasses the probate process.
What are the advantages of a living trust?
There are many benefits to creating this kind of trust, including:
- Having greater oversight of your assets by retaining control during your lifetime.
- Avoiding probate by arranging for a trustee to facilitate the transfer of assets to beneficiaries.
- Saving money by avoiding probate costs and reducing the amount of your taxable estate.
- Protecting your privacy by transferring assets privately.
- Providing options in the event of incapacitation that avoid court management of your estate.
- Safeguarding against a will contest by holding up better than a will.
You can set up a living trust as revocable or irrevocable based on your needs. Using this tool helps you create a faster, smoother transition of assets outside of the court probate process. Your family can inherit your estate more quickly with fewer expenses.
