Living Trusts
Trusts and wills are two means of passing property upon your death. There are other purposes for trusts. This section discusses trusts and compares the use of a trust to the use of a will. In many cases, using a living trust can be advantageous, but caution should be exercised. In certain circumstances, using a trust may unnecessarily complicate your estate, and in some cases may actually be disadvantageous. Because this area of the law is complex, an attorney should always be consulted before making a decision as to whether a trust is right for you.
That being said, there are many benefits to the use of living trusts in estate planning. We frequently recommend them to clients who are in a position to realize the benefits of a living trust:
Living Trusts can help your estate avoid probate at death, including needless and expensive probate in multiple states if you own property in more than one state.
Living Trusts can be used to take maximum advantage of federal lifetime estate tax exemption, reducing and often eliminating estate taxes entirely.
Living Trusts are relatively inexpensive and quick and easy to set up. Our standard fee for a married couple that includes trusts for both spouses is less than you would expect, and we can complete work on your documents in a matter of days.
Living Trusts assure your intentions are followed through with, because trusts are difficult to contest and unintentional disinheriting (as can happen with joint tenancy property) is avoided. Also, your assets remain in the trust until you say they are to be distributed.
Living Trusts can provide for minors and other beneficiaries with special needs without the intervention of court proceedings.
Living Trusts have other benefits, such as quicker distribution, professional management where desired, and the peace of mind that your wishes will be fulfilled in distributing your assets after death.
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I have a will. Why would I want a living trust?
A will may not be the best plan for you and your family, primarily because a will does not avoid probate when you die. To be effective, a will must go through a lengthy and expensive probate process. Also, because a will can only go into effect after you die, it provides no protection if you become physically or mentally incapacitated.
Fortunately, there is a simple and proven alternative to a will–the revocable living trust. It lets you keep control of your assets while you are living and avoids the need for probate after your death. If you should become incapacitated, a living trust will provide for management of your assets until you recover.
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