Pros and Cons of a Living Trust
A living trust is just like a will. It is a legal document. It spells out all of their desires regarding assets, dependents, and heirs. However, there are a few fundamental differences between a will and a living trust, and it is vital that you understand them.
There are numerous advantages to having a living trust. Living trusts offer benefits to the deceased as well as their beneficiaries.
- By establishing a living trust and enlisting the help of an estate planning lawyer, probate can typically be avoided entirely. This is of great benefit to the beneficiaries because they are able to receive assets faster and avoid the expensive process of probate. A living trust is also a good option for people who prefer to maintain their family’s privacy since probate is a court proceeding open to the public. The probate details who inherits which assets become a matter of public record and are available for anyone who inquires.
- If at any time you become unable to take care of your own finances, like paying bills or anything of the sort, your beneficiaries named can take care of them on your behalf.
- A living trust helps the trustees to carry out the desires of the grantor after they have passed or have become incapacitated.
- Living trusts may be more appropriate for circumstances involving complex or confusing financial situations.
There are numerous disadvantages as well to creating a living trust.
- You must be very alert in transferring ownership in creating your living trust. Make sure you transfer your assets to those who will take care of them.
- Assets not listed in the trust will go through probate.
- Having a living trust while living in New Jersey, New York or Connecticut, you may not need a living trust because probate processes in these states are uncomplicated.
- In situations where there are no children under 18, no additional estate, and not much personal wealth, advantages to a traditional will outweigh the advantages of a living trust.
Contact an Attorney to further explore the pros and cons of a living trust.
Every individual has a different circumstance when it comes to naming beneficiaries for their assets. Therefore, planning your estate can be difficult, but hiring an attorney such as the Wills and Trusts Lawyer Scottsdale AZ locals turn to will help ensure that every legal requirement is met and all of your paperwork is in order. You should consider reaching out to an attorney today.
In conclusion, the author has tried to present you with the Pros and Cons of a Living Trust. Share with us your thoughts and comments!
Thanks to authors at Arizona Estate Planning Attorneys for their insight into Living Wills & Trusts.