You’ve probably already heard, if you’ve done any amount of investigation, that estate planning tools and documents can include trusts when you want to add greater flexibility and control over your assets.
But determining which type of trust you intend to use is difficult, especially if you don’t already have a relationship with an estate planning attorney. One of the most common types of trusts is known as a living trust. You should have a legal document that distributes your assets at your death, but you’re probably asking the question, do I need a living trust or do I need a will. Only around one out every five Americans believe to have a living trust. So how do you know whether or not it’s right for you. A living trust is a legal instrument through which your assets are placed inside for your benefit over the course of your life and then passed on to your chosen beneficiaries at the time you pass away.
Your chosen representative, also known as a successor trustee, is the individual who is responsible for passing on these assets after you pass away. There are many different reasons why you might choose to use a trust, but the top three leading reasons to select a living trust include:
- A living trust avoids the expensive and complicated probate process.
- A living trust can save you money when it’s structured properly depending on your financial situation.
- A living trust provides additional layers of privacy that can help to protect personal details about your life and estate from being viewed by people in the future.
Schedule a consultation with an estate planning attorney today to learn more about your living trust options.