It goes without saying that you should create a written legal document that describes how you want your assets to be distributed upon your death. While this sounds easy enough, you have more than one option.
In the past, most people opted for a will. While this is still an idea to consider, you don’t want to overlook the many benefits associated with a living trust. This could be the right choice for you and your loved ones, however, you’ll never know if this is the case until you take a closer look at the finer details.
Although a will and living trust are similar in some ways, there are several high level differences to become familiar with. Most importantly, with a living trust you place items into a trust during your lifetime. Upon your death, the assets are moved from the trust and to your beneficiaries.
What are the Benefits?
It can be a challenge to opt for or against a living trust if you don’t have a clear idea of the benefits. Fortunately, there are three primary benefits that stand out from the crowd. These are as follows:
- No probate
Are you concerned that your loved ones will have to go through the probate process upon your death? If you’re worried about the time and money associated with this, focus on a living trust.
With this, there is no probate process. Instead, all of the assets held in the trust are passed to your heirs without the requirement of probate. Not only does this result in a faster distribution, but it can also save your loved ones quite a bit of money.
If concerns about probate are on your mind, a living trust is the best estate planning arrangement to implement.
- Save money
Many people shy away from a living trust, instead opting for a will, because they don’t want to spend the money necessary to create this written document.
Yes, it costs more to create a living trust than a will. Even so, remember this: there is cost savings to be had over the long run.
If you think past today and look into the future, you will realize that a living trust can save you and your family money in many ways. This is why it’s imperative to take a long term view of estate planning.
- More privacy
Privacy is one of the biggest differences between a will and living trust. In short, a living trust is not made public upon your death. Instead, your estate is distributed in private so that only the people involved know what is going on.
A will does not have this same benefit. This is public record, meaning that outsiders have access to each and every transaction.
If you’re concerned about keeping the transactions associated with your estate private, you need to opt for a living trust as opposed to a will.
What Now?
Now that you understand the benefits of a living trust, it’s time to decide if this is the right choice for you. Some people realize that now is the time to create this document, with others are still unsure of what they should be doing.
Your goal is to review every aspect of your estate plan until you have a clear idea of what you want to accomplish. Only then can you make informed decisions that will put you in position to better understand the future.
Conclusion
Are you interested in creating a living trust? Could you and your family benefit from this arrangement? If you’re ready to move forward, you have come to the right place.
At Frank & Kraft, Attorneys at Law, we have helped hundreds of people create a living trust. Of course, if you think a will is the right approach, we can assist you with that as well.
What matters most is that you contact us or call today at (317) 684-1100 to discuss your situation and receive advice in regards to what you should do next. There are many steps to take, and we’re here to guide you. With our help, you can create a living trust and feel better about what the future will bring.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.
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