Most Americans know the importance of forming a legal document to distribute their assets upon their death, but one of the questions we at Travis G Black & Associates get asked often is whether or not a living trust is the right option for them. Below our Folsom estate planning attorney has listed some information to consider when deciding what is best for you.
Consider Your Age
Creating a living trust can be the best option for those over the 55 or 60 years old. As a living trust will not provide anything for you during your life, for most healthy middle-income individuals, creating a living trust is not necessary. For most individuals under 45, a will can suffice in the event you unexpectedly died.
Consider the Size of Your Estate
Another factor to consider as you decide to create a will or a living trust is the size of your estate, or simply, how wealthy you are. One of the reasons people create living trusts is to avoid the probate process for your beneficiaries and to save on estate taxes. If you are a 40-year-old with an estate size of $15 million, you may want to consider creating a living will as it could save your beneficiaries money on estate taxes. However, if you are a 45-year-old with $300,000, you may want to hold off on creating trust.
Consider the Type of Assets
Even if you are young, if you are the owner of a business or perhaps own several properties, you may want to consider creating a living trust. This is because, should you die unexpectedly, your executor would be caught up in probate while going through the process of distributing your wealth to your declared beneficiaries. This process could take years and during this time, the legacy of your business could suffer.
Consider Your Marital Status
If you are married and you and your spouse have decided to leave your property to one another, or if you jointly own your property, there is less reason to stress over avoiding probate as the jointly owned assets will not go through probate while your spouse is still alive.
We Can Help!
Whether you decide to draft a will or a living trust, our qualified Folsom estate planning attorney can assist you.
Contact our firm today for a free consultation.