We’ve covered the benefits of having a Will but what are the advantages of having a Living Trust? We found a good story in Time that offers valuable details.
While we recommend everyone have a Last Will and a Living Will, a Living Trust may not be for everyone but it can be a valuable addition to an Estate Plan. Here’s why.
A Living Trust is set up during your lifetime instead of going into effect after you pass away, which means it has the following advantages over a Last Will.
1. Estates can be settled more quickly
Unlike a Last Will, your heirs will not have to wait to find out if any creditors will come forward and file claims on your estate.
2. You can avoid Probate
Assets in a Living Trust do not have to go through the probate process, which means your heirs won’t be burdened with added expenses for lawyers, estate executors and processing the necessary paperwork, or the potential publicity and inconvenience of a court distribution of your estate.
You should be aware that avoiding probate court is more valuable in some states than others. Many states have a faster form of probate for smaller estates. To find out what your state offers, check Nolo.com’s list.
3. You have back-up investment help
Living Trusts require that you name a trustee to manage the assets of your trust, pay the taxes, maintain records and make payments to the beneficiaries. Even if name yourself trustee, you still have to name a successor trustee, which means you already have someone in place to take over if you become incapacitated and are no longer able to manage your money.
4. You can help your children
Living Trusts are great if you have young children or heirs with special needs. When you set up a Living Trust, you can add provisions specifying when a child or heir can receive assets and how he or she can use the property you pass down to them.
Read the story here.