EIN Presswire’s recent article “Advantages of a Living Trust” explains that, if you have not prepared a will, your state of residence dictates the distribution of your estate by default.
A living trust is a legal document that is created during a person’s lifetime where a named person (the trustee) is given responsibility for managing the trustmaker’s assets for the benefit of the beneficiary. A living trust is designed to provide an easy transfer of the trustmaker’s(grantor) assets, while bypassing the probate process.
If you fail to plan for your estate, it can result in the government—not your heirs—inheriting the majority of your assets. That is because the top estate tax rate is an 40%.
Moreover, probate costs can take from 5% to 25% of the gross value of your estate, and the probate process can take a year or longer. It can be a very difficult and frustrating experience for your surviving family.
You can’t just think you’re doing effective estate planning by putting everything you own into joint title or having a will leaving everything to your spouse. You need to review your circumstances with an experienced estate planning attorney.
Let’s see what you can do with a living trust:
- Avoid probate delays and expenses.
- Reduce the emotional stress on your family.
- Eliminate or reduce taxes.
- Enjoy total flexibility, since a living trust can be changed or canceled at any time.
- Keep control of your assets, even in the event of your incompetency and after your death.
- Avoid a conservatorship at physical or mental incapacity.
- Keep your privacy, as a trust is completely confidential.
- Allow for a fast distribution of assets to beneficiaries; and
- Save time, money, and future headaches for your family.
Ask an experienced estate planning attorney, if a living trust fits into your comprehensive estate plan.
Reference: EIN Presswire (March 12, 2021) “Advantages of a Living Trust”