More than one out of eight Americans possess living trusts, according to Caring.com. If you embrace this alternative to a traditional will, it places major existing assets into a trust for future distribution to heirs and/or nonprofits. This approach has six major advantages:
1. If you create a revocable living trust, you’ll always have the option to update or cancel it. You can easily select different recipients and add or withdraw property when desired.
2. Your chosen trustee would immediately gain control of the assets and have the power to make important decisions if a health problem incapacitates you. On the other hand, a conventional will may allow court officials to intervene in this situation.
3. An irrevocable or asset protection trust shields valuable possessions from creditors. It can help to ensure that your heirs still receive an inheritance if you face a lawsuit or unexpectedly incur massive debts.
4. This document enhances privacy for family members and friends. When you pass away, your decisions and property distributions remain confidential. Wills become public record, making it easy for anyone to identify the recipients of valuable belongings.
5. Although you might spend more money to set up a living trust and transfer assets to it, this process often results in long-term savings. Unlike a will, it doesn’t trigger the costs and delays associated with probate court.
6. You can use a charitable trust to donate some of your assets to a nonprofit group in an economical way. It frequently reduces gift and/or estate taxes, ensuring that more of your cash reaches favorite charities.
To sum it up, this solution can cut expenses, improve privacy and maximize your control over high-value assets. It also reduces the likelihood that a probate judge will decide how to distribute your property. Please contact us to learn more.