While many people have heard of Living Trusts, many of those people do not know about the benefits of a Living Trust or how it can fit into their estate plan.
Benefits of a Living Trust can include:
- Avoiding Probate. (Probate is the costly Court process of administering an estate). A properly prepared and funded Living Trust can allow the transfer of assets without going through the probate process.
- Privacy. The terms of the Trust including the Beneficiaries are private.
- Ease of Transferring Assets to the Next Generation. Upon the death of the beneficiary, the assets in a Living Trust are often transferred immediately as designated in the trust. The assets are often transferred to the new beneficiaries in a new trust or trusts.
- Access in Case of Incapacity. A Living Trust can provide for a trustee or successor trustee to manage the trust funds and pay bills for the beneficiary if he or she becomes incapacitated, disabled or otherwise unable to make decisions for themselves.
- Avoiding Costly Court Proceedings For Minor Beneficiaries. A Living Trust can be used to avoid costly Court proceedings when a person dies with minor children by designating a new, successor trust and naming a trustee to manage and distribute the assets appropriately for the child or children.
- Protecting and Preserving Assets for Children. A Living Trust can be used to pass assets in a way to protect and preserve the assets that are transferred to a minor child or even to an adult when the parent dies so that the assets are there for expenses such as education, medical expenses and support.
- Asset Protection for Successor Beneficiaries. While a Living Trust generally does not provide asset protection, upon the death of the beneficiary, assets can even be transferred to a different type of trust for the successor beneficiaries that can provide a much greater level of asset protection from creditors, risky investments and future ex-spouses.
Making a Living Trust Part of Your Estate Plan
Incorporating a properly prepared Living Trust into your estate plan can allow you to take advantage of the benefits and create a plan for you and your family that meets your needs and goals.
If you would like to learn more about the Benefits of a Living Trust, or are considering making a Living Trust part of your Estate Plan, then contact us by phone (720) 420-1777 or email to set up a free Estate Planning consultation.