When creating an estate plan, you'll come to find that there are many ways to pass on your assets upon your death. Although it's a big decision, with the right information guiding you, it won't be long before you have a clear idea of what to do next.
One of the first things you should do is compare the benefits of a living trust to the creation of a will. When doing so, here are some details that will come to light:
- A living trust is active during your lifetime: Unlike a will, which is effective upon your death, a living trust can be helpful while you're living, such as if you become incapacitated.
- No probate with a living trust: Assets held in a living trust are not subject to probate. This allows for them to be passed on to your beneficiaries in a timelier manner. It also saves your loved ones from the hassle and costs associated with the probate process.
- A living trust is private: Many people don't realize that a will is public record. Upon your death, anyone can uncover the information included in your will. A living trust is completely private, ensuring that outsiders don't have access to your business.
With so many benefits of a living trust, it's important to strongly consider if this should be part of your estate plan.
If you're ready to create your first estate plan or alter what you already have in place, learn more about the process of creating and managing a living trust. Knowing your legal rights goes a long way in helping you do what's best for your family.