If you, like most citizens, can't stand the idea of having to go through probate, then a living trust takes on a much greater level of importance. While avoiding probate is one of the leading benefits to having a living trust, there are many more factors at work. There are a variety of great reasons to have a living trust.
First and foremost, a living trust allows you to protect your loved ones' potential inheritance. Instead of simply handing your son, daughter, niece or nephew a large sum of money before they are old enough to handle it properly, you're able to establish a trustee to watch over the money until they are mature to be trusted. This essentially guarantees they won't be able to squander it.
Creating a living trust also allows families or individuals to avoid the issues that arise when a loved one becomes incapacitated. By outlining your desires ahead of time, this keeps family tensions at bay. You're able to properly designate the people you wish to have in charge of all your financially related affairs.
A living trust allows your property and finances to be controlled more easily, and without the supervision of a court. A living trust ensures that your possessions can be transferred to your chosen parties even if you are unable to do so on your own.
Wills are often contested, especially in cases where they are not specific. Since a will does not go into effect until a person dies, whereas a living trust goes into effect as soon as it is signed, this leaves less room for argument. Because it is completely free for a family member to contest a will, this often greases the skids for a long, drawn out battle.
The family member who is contesting is able to obtain a lawyer under an contingency fee agreement and patiently await the outcome. With no money of their own on the line, it's easy why so many disgruntled family members choose this option. Any contesting of the will also bring any estate settling to an immediate halt.
One of the most vital benefits to having a living trust and avoiding probate is being able to keep your affairs private. Since probate is a public procedure, any citizen is able to enter a probate court and look up your files. This can cause a variety of issues. Salesmen can find your information and attempt to prey on your loved ones' grief. Family members who are not satisfied with their inheritance, even those you considered friends, may all feel compelled to take a look.
A living trust stops these problems before they can start by keeping all of your information private. Privacy is of the utmost concern at a time like this, and defending it is as easy as having a living trust.
Having a living trust is of great importance. A living trust gives you the chance to prepare for hard times ahead and makes life easier for your loved ones. For these reasons and many more, you should consult with a professional and see if a living trust is the right choice for you.