Just 40% of adults in the United States have any kind of estate planning documents in place. That leaves 60% of adults who don’t have their property and other assets protected in the event of death.
Without planning, their family and loved ones will have trouble trying to determine what to do next.
Frequently, when thinking of estate planning, we think of a will. However, there are other options. Creating a living trust may be a better option for you and your family, advises kake.com’s recent article entitled “What Are the Advantages of Creating a Living Trust for My Family?”
The article provides some of the major benefits of a living trust.
It can save your family money. When a person with a living trust passes, the trustee takes possession and control over the trust property, according to the instructions provided by the trustor. It can be less expensive, because there are no fees that may be incurred in probate. Everything also moves faster.
Protection of your privacy. A living trust is much more private, because it does not have to go through the probate court and will not become public record. In contrast, a will becomes public record, that anyone can request to view as a court record.
A trust is for more than death. A living trust can be invoked at other times before death. The creator can add specific stipulations and conditions to the living trust to designate when the trustee can take over the management of property and finances.
More difficult to challenge. A will can be contested in court, if a family member thinks that he or she is entitled to more of your assets than was outlined in the will. A judge can rule that your will is not valid, and the contesting family member can possibly get more than you intended. With a living trust, there is much less chance that this will happen.
Creating a living trust takes legal expertise, so work with an experienced estate planning attorney. You can then discuss an entire estate planning strategy.
Reference: kake.com (April 20, 2020) “What Are the Advantages of Creating a Living Trust for My Family?”