A living trust can be a valuable estate planning tool for many people. A revocable living trust designates someone to be responsible for the management of your property. A trust fund usually has three designated roles: the creator, who is usually the person the trust is written for; a trustee, which would also be the person the trust is written for as long as he/she is still living; and the beneficiaries. The trust is revocable because the trust can be changed by the creator at any time and for any reason.
There are many benefits to living trust. Here are the three major ones:
It avoids probate
Without a doubt, the most attractive attribute of a living trust is that it avoids probate. Probate will typically take months or even years. With a living trust, your heirs may receive the assets from your estate in a matter of weeks.
This applies to out-of-state property, too. If you have a will and you own extensive property in other states, each piece of property will have to go through probate in its own state. With a living trust, you avoid these probates.
A will is a public record, so the details of the will are accessible to anyone. A living trust is not made public.
There can be tax benefits
While the tax benefits of a living trust are minimal compared to an irrevocable trust, there are certain benefits that an estate planning attorney can help you leverage.
Revocable living trusts can be excellent estate planning tools for many people. If you’d like to discuss your estate plan – or if you need to get started with your plan – we can help. Please contact us today to learn more!