There are many options when creating an estate plan and no one-size-fits-all solution. While that may complicate the process, it allows individuals to tailor their estate plans to meet their unique circumstances.
Depending on your situation, you may come to realize that a living trust is the best thing for you and your family.
If you don't understand the benefits of a living trust and assume a simple will is all you need, you could miss out on the many benefits trusts make available to you and those you love, now and in the future.
Here are several top benefits associated with living trusts:
- Avoid probate. If you write a will and have no living trust, your estate will go through probate upon your death. This can cost a lot of money and also drag on for an extended period of time.
- Helpful during incapacity. In the event of your incapacity, a living trust ensures that the person you choose steps in and handles your affairs.
- More privacy. A will is public record, meaning that others can see your assets, their value and who ends up with them. You don't have to worry about this with a living trust.
- More control in the future. With a living trust, you have control over what happens to your estate after you're gone. For example, you can decide to leave money to your children, but add a stipulation that they can't access it until a certain age.
There are many estate planning strategies to consider, with a living trust being one of them. With so many benefits, it's worth learning more as you draft the estate plan that best meets your needs.