A trust is one part of estate planning that allows you the option to choose how your beneficiaries will receive assets after your death – and how much. Many people have the misconception that they don’t have enough assets to necessitate a trust, but in reality, trusts can be beneficial to everyone. If you are thinking about creating a trust but aren’t sure if it’s right for your plan, keep reading to learn about some of the benefits of living trusts and some things to consider.
What to Consider When Creating a Living Trust
There are many different types of trusts to consider during the estate planning process. Most living trusts are created as revocable trusts, which keeps you in full control of the assets and gives you the ability to make changes as needed. With a revocable living trust, you are responsible for taxes on the assets; the assets are still yours until the time of your death to do with as you please.
On the other hand, irrevocable trusts go into effect as soon as they are created. The trust cannot be dissolved or changed in any way because the assets are essentially removed from the estate. Irrevocable trusts offer less flexibility, but depending on your financial situation and goals, you may want to discuss the best type of trust with an estate planning attorney.
Benefits of Creating a Living Trust as Part of Your Estate Plan
Keep Assets Out of Probate
Probate is the process of legally distributing a person’s assets after his or her death. One of the main reasons people choose a living trust is that it keeps the trust assets out of probate. That can save your beneficiaries the time, money, and stress that is typically involved with probate court.
Maintain Privacy
When a will goes through probate, it is made public. Everything from the names of your beneficiaries to the amount of assets they will receive is Because trusts do not go through the probate process, the assets are protected from the public eye, maintaining your privacy and the privacy of your loved ones.
Protection During Your Life
Of course, an estate plan is in place for your loved ones after your death. But did you know that a living trust can also be beneficial during your lifetime? Living trusts can protect your family and loved ones in the event that you become incapacitated, serving as a backup plan for when things don’t go as planned.
Flexibility
We all go through major changes in our lives: marriage, divorce, birth, death, career changes, and more life events may change the way you want your trust to be organized. For example, your children may have children, in which case you probably want to amend your trust to include your grandchildren.
It’s important to remember that a living trust is just one part of your estate plan. There are other components that can help you create a well-rounded plan that protects your assets and benefits your family and loved ones. If you’d like to learn more about how trusts can fit into your estate plan or to get started on creating a plan altogether, contact the law team at Mark Harford Law. Contact us today to schedule a consultation with a Missouri estate planning attorney.