Whether you are young or old, single or married with 5 kids, it is a good idea to have a legally binding Legal Trust. You work hard for your money and for your assets, make sure you protect your assets with a Living Trust.
How does a Living Trust differ from a Last Will and Testament? Why do you need a Living Trust?
- A Living Trust is a way to legally control your assets while you are still living, whereas a Last Will and Testament legally defines what happens to your assets after you pass away. With the Living Trust, you remain control of all assets in the trust while still alive, and they transfer to your designee upon your death.
- It is a good idea to have a Living Trust because it will clear up any ambiguity about your assets. This means there will be no complications with your heirs when you pass. Perhaps more importantly, a Living Trust will help avoid Probate court. If you rely solely on a Will, your heirs could be subject to lengthy court proceedings that take up valuable time and resources. A Living Trust will help your heirs avoid the courtroom.
- You might also prefer a Living Trust instead of a Will because it will offer you more privacy. Wills are a matter of public record, so anybody can search and find your Will. However, a Living Trust is going to be dispersed to your heirs privately, keeping all records sealed.
- A Living Trust will also help your heirs save on estate taxes. While money inherited via a Will is subject to estate taxes, money inherited via a Living Trust is different. You can set up a Living Trust to hold money for your children or your spouse and it will not be subject to the same estate taxes as if the money went to them in a Will.
Is a Living Trust right for you? If you have any more questions about Living Trusts, or want some help getting started, please contact us.