You’re working on your estate plan because you want what’s best for your future as well as those in your family. Many people understand that they should have a special document in place that helps them dictate where their assets will go after they pass away. Many people put this in their will, but a living trust may be best given the circumstances. Living trusts are different than wills because the assets that mean the most to you are put into a trust to benefit you during your lifetime, and then given to the beneficiaries at death. Your executor, on the other hand, draws out wills, when you pass away. Let’s take a look at the pros and cons of a living trust so that you can make the best decision for your future.
Pros and Cons of a Living Trust
- One of the biggest benefits is that your loved ones will be able to avoid probate, which can be one of the most stressful times after any loved one passes away, especially for the family members who mean the most to you. If you own real estate in more than one state, you should always have a living trust so that your children and other beneficiaries can avoid probate multiple times. Revocable living trusts were made with you and your family in mind, which means that it makes the process that much easier and quicker when it needs to be.
- You can also avoid guardianship and conservatorship through a living trust. This makes the process less restrictive and more streamlined, which means that you will be able to take over assets without a judge getting in the middle and making all the calls.
- If you’re looking for privacy when it comes to your assets and keeping your family out of the spotlight, this is the best option. Anybody can have access to a probate file but, if a living trust is put in place, you don’t even have to file with the court, which means that it will not be a public record to everybody out there.
- The costs tend to be a bit higher in the beginning, but again, it can save you a lot of stress in the end so this is something to be considered.
- You will have to fund your trust, which means that you may have to go through a time-consuming process to do so. You’ll have to get in touch with your banks, insurance companies, and anybody you have investments with to talk about how you will issue new stock certificates, retitle vehicles, and more after you have passed away. You want to make sure you have everything you need to fund your trust so that you and your family can get the most out of it.
- You should still have a Last Will and Testament to coincide with the revocable living trust because you never know if you will be able to fund it to the best of your ability.
Now that you’ve weighed the pros and cons, you may wonder how you want to move forward. Are you going to be one of the 20% or so who enters into a revocable living trust and makes strides toward your future and the future of your loved ones? If so, we want to hear from you at the Leiva Law Firm. Call us as soon as possible to get started at 818-703-1777.