At some point, you will get involved with the estate planning process. Along the way, there are many questions to answer. Here is one of the most important:
Should you create a will or living trust?
For many years, a basic will was the most commonly used estate planning document. However, as of late, a growing number of people are turning their attention to a living trust.
If you find yourself wondering what to do next, it’s important to understand the many benefits of a living trust. With these details in mind, it’s much easier to decide if this is the right decision for you, your family, and your estate.
Here are the top benefits:
- A living trust avoids probate. With a will, your estate will very likely go through probate upon your death. Not only does the probate process take time, but the costs can quickly add up. You can avoid all this by creating a living trust.
- Saves you money. Although a living trust will cost more money to create upfront, it will save you and your family over the long run. Some people find it difficult to look toward the future, but you need to do just that when creating an estate plan.
- Are you concerned that other people will gain access to your financial life upon your death? With a will, this is something that you should definitely be worried about. This type of legal document is public record. Fortunately, a living trust is not public, meaning that others are unable to see how your estate is distributed.
- A living trust can provide benefits if you become incapacitated. If you are unable to make your own decisions for any reason – such as a serious illness or accident – a living trust allows a trustee to step in and manage your assets.
- Peace of mind. Are you tired of always worrying about your estate plan? Do you have concerns about the challenges the future will bring? Although you may not be able to put all these fears to rest, a living trust can definitely help clear your mind and ease some of the tension.
No two people are the same, which means you need to take your own approach when it comes time to create an estate plan.
Although you may not end up creating a living trust, this is something you should at least consider. Once you better understand the benefits and how it can help your family in the future, it may make the most sense for somebody in your position. The place to start is with a consultation with an experienced and qualified estate planning attorney.