Having a living trust is becoming more popular by the day with a growing number of Americans having living trusts as part of their estate plans. It is similar to a last will and testament, and it gives you the ability to transfer ownership of your estate to the designated beneficiaries by a successor trustee named by you. The following are four advantages of having a living trust.
It Protects Your Privacy
Because a living trust is a private document between the parties involved, you are assured of total privacy of your assets and their distribution. Unlike a will which is a public record, a living trust is not part of the public record. Only the people privy to the trust will know about its contents and this is a great way to keep your family’s financial affairs private.
It Can Help in the Event of Incapacitation
In case you fall ill or become incapacitated, the person you appointed as the trustee of your living will, can step in and manage your affairs without having to involve courts and trust lawyers. This makes it possible to avoid a court-appointed conservatorship that may not serve your interests. Since you may make it revocable or irrevocable, if it is revocable you can dispute the implication that you are incapacitated and keep control of your affairs.
Avoids Probate
Probate is the legal course by which a court authenticates a will and approves its executor. You end up saving valuable time as well as money because even trust lawyers need not be involved.
Can Easily Protect Minors
When there are minor children involved, a living trust can hold the monies for them until they are old enough to manage the funds themselves. It is also possible to stagger the disbursement over a period of time to make sure it does not end up in the hands of a beneficiary who may be of age but is not yet be fully able to responsibly manage it.
With just 18% of Americans over the age of 55 having a will, durable power of attorney, and advance health care directive, it is crucial to stay informed on the importance of these legal documents. If you’re looking to create a living trust for yourself, contact the professional and experienced trust lawyers of Sean J. Nichols, PLLC for more information.