One of the questions many clients ask us is if they should have a living trust. There are numerous benefits to having a living trust. Below, our Folsom trust attorney at Travis G. Black & Associates can review these many benefits and help determine whether or not this is the right plan of action for you.
Keep on reading below for the top benefits of having a living trust!
The Benefits of a Living Trust
Living trusts are legal documents that discuss how your assets should be distributed once you pass away. Many people go back and forth between whether they should have a will or a living trust. Only a small percentage of us across the country have a living trust; this may be due partly because they do not understand the purpose or how it might be advantageous to their situation.
Here are some of the top reasons you should consider having a living trust:
1. Having a living trust will not require probate.
With a will, the estate must go through probate. The courts will decide how the assets should be distributed. A living trust, on the other hand, avoids the probate process. The beneficiaries of the trust can expect to receive their benefits much more quickly, as opposed to a will which can take months and even years to distribute. The trust will also serve to pay off the trust maker’s debts and handle any other financial matters, as well as provide for your children.
2. A living trust can be more cost-effective in the long run.
First, understand that a living trust is much more involved and will have many legal variables involved. Therefore, the initial cost could be significantly more than creating a will. You have to set up all of your various bank accounts, stocks, bonds, and other investments to filter into the living trust. Therefore, it is not as simple as writing up a letter and call it a “living trust.” It must be funded. The most significant factor in overall reduced costs, mainly because you avoid court.
3. Living trust proceedings are confidential and private.
The procedures for living trusts is the amount of privacy it gives the trust maker. You may already be aware that any process that goes through court is fully documented and becomes a matter of public record. With a living trust, none of your affairs are made public after your death. Therefore, all of your wishes will be distributed according to your wishes.
If you are still unsure, or you would like to discuss your options for creating a living trust or a will, do not hesitate to contact our Folsom trust lawyer.
Travis G. Black & Associates can provide you with skilled and experienced legal counsel, to help you make those critical decisions at this time.