One of the biggest misconceptions about living trusts is that wealthy people are the only ones who benefit from them.
Additionally, a living trust ( also known as”inter vivos” or “revocable” trust) is often confused as being the same as a last will. However, even though they are both very useful, these are two distinct legal documents. A living trust and a last will are both used to dictate how an individual’s assets will be distributed after their death. They are also both used to designate the guardianship of surviving children.
On the other hand, a last will is less intricate than a living trust in the sense that it cannot be used to provide protections against potential legal challenges, such as those that may come from probate courts. Wealthy families are not the only targets of probate court in the event of an untimely death of an influential member. This is one of the reasons why having a living trust is very important.
About one-fifth of Americans have living trusts. A sizable number of these individuals are not wealthy. In addition to helping families avoid probate court after the death or incapacitation of a family member, living trusts also help execute swift asset distribution to family heirs. Moreover, a living trust can help save money if the designee has a joint living trust with their spouse.
Every legally applicable family, even those in the working class, deserves to be able to manage important finance and real estate-related affairs without the judicial system being involved. Though not foolproof, a living trust provides families the freedom to regain systematic normalcy in the event a loved one dies or loses their ability to manage their own personal affairs.
Though preparing and solidifying a living will may have its cost, the peace of mind benefit of having one is priceless. To secure a binding foundation for your family, contact us.