There are many benefits of using a living trust as part of your estate plan. Below, our Centennial estate planning lawyer discusses three advantages of a living trust.
Benefit #1: Avoid Probate
One of the main benefits of a living trust is that your family avoids probate court after your death or incapacitation. Probate encompasses the legal procedures and requirements that you must follow after someone dies with a certain amount of assets. It is a time-consuming, costly and public process. All assets funded to a trust avoid probate. This means that the assets can be
distributed directly and quickly.
Benefit #2: Have Control Over Your Assets
A living trust ensures that you have control over your assets in the event of incapacity and/or death. It will prevent the court from controlling your assets. Rather, a living trust allows you to choose a successor trustee. Your appointed successor trustee will manage your estate for you if you can no longer manage it. Additionally, you can put a living trust into place that will provide for you in the event of incapacity.
Benefit #3: Protect Your Privacy
When you use a living trust, your estate distribution stays private. A living trust is a private document. This means that the terms of a living trust stay out of public record. A living trust differs from a will in this matter, because wills must go through probate, and become a matter of public record.
Are There Disadvantages of a Living Trust?
A few disadvantages of a living trust include:
- A living trust is generally more complex and expensive to create than other estate
planning tools like a will. - A living trust cannot name a legal guardian for your minor children after you pass away.
- It requires more upkeep than other estate planning tools as you acquire additional assets, sell assets, and when major life events occur.
Our Centennial estate planning law firm can help you combine a living trust with other estate planning tools to protect your assets and your family. We are happy to help you to understand your best options.
Contact Skipton Law, LLC Today About Setting Up a Living Trust Are you ready to get your estate plan in order? At Skipton Law, LLC, we have extensive experience helping individuals set up estate plans according to their goals and intentions. We can discuss whether a living trust is right for you. Contact us today at (720) 770-3880 or fill out our online contact form and we will be in touch with you soon.