A living trust, also known as inter Vivo or revocable trust, is a legal entity that owns the trust creator’s assets so that he can benefit from his property during his lifetime. Moreover, after the trust creator’s death, all the assets are transferred to the designated beneficiaries by the successor trustee.
The terms of a living trust can change from time to time, and similarly, the trust can be canceled entirely. It is the reason why it is a revocable trust. Many people want to include a living trust in their estate plan but do not know its benefits. Therefore, you should read this article to learn that how can a living trust benefit you.
Probate is a process supervised by the government, which includes distributing the estate of a deceased person. The process of probate can be lengthy depending upon the estate, assets, and the individuals involved.
This lengthy process can delay property distribution among the beneficiaries and can also cut down on what they inherit.
However, if you place your property in a living trust, you can avoid probate as the successor trustee will distribute the assets according to the instruction of the trust creator. Moreover, there will be no involvement of the court in this matter.
A live trust creator saves money by avoiding probate expenses. Similarly, a living trust is better than the will as someone comes forward to contest the property distribution, which helps in saving your estate money.
However, a living trust is a complex legal document and requires different actions as you will fund the trust with your assets. Funding the trust with your asset means that you transfer the ownership of your property to the living trust. Furthermore, affordable living trusts also provide saving benefits to the married couple in a joint living trust.
A living trust is a private document that stays between the involved parties and does not become a part of public records. It means that no one can out about the distribution of your estate by checking the public records. However, if we talk about the will, it is a public record and can become public.
Assistance in the case of incapacitation
The living trust provides the facility of assistance if the trust creator becomes ill or incapacitated. It means that the successor trustee selected by the trust creators can manage the affairs of the trust creator without any intervention of the court.
Peace of Mind
A living trust, if drawn correctly, sets a clear plan to deal with your assets. It helps by preventing your form from unintentionally disinheriting someone. Moreover, it can help you provide your love and care to your family in their future needs. Similarly, it can protect your asset from certain people.
The trust and relaxation that your property is safe will give you peace of mind as you will know that your estate will be handled according to your wish.