Why Should I Set Up A Living Trust?

Stay In Control

Setting up a living trust allows you to transfer vehicles, real estate, bank accounts, and any other assets you own. Upon your death, your selected trustee distributes assets to your selected beneficiaries based on your documented wishes.

Stay Out Of Probate Court

In estate administration, exemptions exist for jointly owned assets with someone who holds the rights of survivorship. A beneficiary can also claim savings accounts and certificates of deposit with a payable-on-death (POD) designation. Similarly, transfer-on-death (TOD) registration for securities allows your selected beneficiary to inherit the assets automatically.

Keep More Money

A trust can help reduce or eliminate estate taxes and avoid legal fees that come with a lengthy probate process. Retaining an attorney to set up your trust can spare your loved ones the costs associated with legal dispute in court. They can keep more of the money you provided them.

Protect Your Privacy

Probate is a process where intimate details of your finances and last wishes are revealed and part of the public record. You can spare your loved ones the details of your asset division, avoiding inter-family conflicts and possible legal challenges.

Protect Loved Ones

Probate avoidance is an important goal in setting up a trust. However, you also want to ensure financial support for children and loved ones with special needs unable to manage their own assets. It is important to note that inheritances can potentially disqualify them from government assistance.

An estate planning attorney can be not only a vital resource, but also an aggressive advocate when legal disputes arise. You and your loved ones need someone to navigate you through the process and focus on your best interests both now and in the future.

Source: Forbes, Should You Have A Trust?, Erik Carter, September 12, 2014