Indianapolis living trust attorneys can assist clients with the creation of a living trust. A living trust, or revocable living trust as it is also called, is a trust you create during the course of your lifetime. There are some significant benefits associated with creating this kind of trust which makes it a popular tool in the estate planning process for many people.
If you are thinking about how you can protect your assets as you get older or if you are interested in learning about trust creation, Frank & Kraft can help. Our legal team will work with you to determine if creating a trust is something you should do and will help you to make sure you select the right trust type for your particular situation.
To find out more about how Indianapolis living trust attorneys can help, give us a call. You can also learn about three key benefits of a living trust below to decide if this kind of trust is something that you would be interested in including in your plan for the future.
Benefit 1: A Living Trust Protects Assets in Case of Incapacity
If you become incapacitated and something happens to you, someone is going to have to begin to manage the assets that you are no longer able to be in control of. If you have not made an incapacity plan, then guardianship proceedings may be necessary to determine who will take over control of the management of your assets. The court will appoint someone, and that person may not be an individual who you would have wanted to be in charge of asset management.
You can take control over who will manage your assets by creating a living trust. When you make a living trust, you transfer assets into it and you designate a successor trustee who will take immediate control over trust assets if something should happen to you. This allows you to protect your wealth from mismanagement and allows you to ensure there is no period when confusion over who manages your assets leads to the potential for financial loss.
Benefit 2: A Living Trust Allows You Continued Control Over Trust Assets
With a living trust, you can opt to be the primary trustee of the trust you create. You can retain substantial control over the assets that you transfer into the trust after it is created and you can decide to modify the trust or even end the trust if you wish to do so. You must give up much more control when you make an irrevocable trust as an alternative to a living trust.
While an irrevocable trust provides certain types of protection for your assets that a living trust doesn’t, due to the fact you retain control, you may not be able or willing to cut off as much access to trust property as an irrevocable trust would require. When you opt for a living trust, you do not have to give up control over your wealth when you don’t want to.
Benefit 3: A Living Trust Allows You to Transfer Assets Outside of Probate
The probate process can take a long time, with Investopedia estimating the process lasts for around a year. Probate can also come with significant costs, with Investopedia estimating that Probate expenses total around three to seven percent of the value of the estate.
If your heirs or beneficiaries are waiting for an inheritance because you were a primary breadwinner or because the assets that you’re transferring need to be carefully managed by new owners, the long probate process can be a big problem. It can also be avoided by creating a living trust that allows assets to transfer through trust administration instead of through the probate process.
While assets that you put into a living trust will still be considered part of your taxable estate, the fact that these assets can quickly transfer outside of probate is one of the key reasons why so many people opt to include a living trust in their estate plan.
Getting Help from Indianapolis Living Trust Attorneys
Indianapolis living trust attorneys at Frank & Kraft can help you to take advantage of these and other benefits associated with the creation of a living trust. You need to make sure you protect your assets and that an inheritance you leave behind can appropriately provide for your family if something happens to you. Our legal team will help to make that happen. To find out more about the ways in which our legal team can assist you with trust creation, join us for a free seminar. You can also give us a call at 317-684-1100 or contact us online today for help.
- Debunking Estate Planning Myths - May 30, 2023
- Do I Need an Indiana Advance Directive? - May 25, 2023
- Which Document Is More Important in My Estate Plan — a Will or a Living Trust? - May 23, 2023