During the estate planning process, it’s important to detail what you would like to happen to your assets once you pass away. One type of document you can develop is a living trust, which offers a few key benefits over other options.
One main benefit of a living trust is that it enables you to avoid probate. If you want to create a will, this will require the estate to go through probate, which are the court proceedings that assets typically go through with the help of an executor.
Living trusts avoid probate altogether, which allows for quicker distribution of assets to designated recipients by as much as months or even years compared to a will. Successor trustees will be responsible for paying your debts and properly distributing all assets in accordance with your wishes.
Save More Money
Depending on your financial situation, you can save money with a living trust. Although it may be more expensive to create a living trust than a will because of its complexities, the separate paperwork needed to transfer assets to the trust can further complicate the process, a living trust could save more money for your estate at the time of your passing because of the avoidance of probate. Court costs associated with probating wills are taken directly from the estate.
However, individuals who have simple estate plans or married couples without significant assets or heirs may not find living trusts ideal.
Gain More Privacy
Another advantage of a living trust is the ability to maintain privacy. While wills are public records, the living trust doesn’t become public upon the decedent’s death and allows for private distribution of assets.
Each of these benefits makes creating a living trust more ideal than a will for many going through the estate planning process. If you are unsure how to proceed with a living trust and would like to learn more about the benefits, call 469-202-3096 or contact the offices of the ProAdvocate Group online for a free consultation.