Three Reasons To Consider Using A Living Trust For Your Estate Planning

11 October 2017 by Jonathan Phillips

Estate planning is not something you should put off for too long, especially if you have significant assets. However, one important part of estate planning involves a living trust. Although you can use a traditional will, there are many advantages to a living trust to consider. The following are among the most noteworthy:

You will avoid probate court

Wills must be looked at by a probate judge and compared to outstanding debts that the deceased had. The courts will take inventory of your wealth and make sure it is distributed properly. With a living trust, a trustee of your naming takes care of any outstanding debts from the trust and then distributes the proceeds. All of the functions of a trustee are executed much faster than a typical probate court. Your heirs will experience less of a delay in receiving their inheritance after your death.

There is less chance of a living trust being contested

There are often several people who may want to contest a will and for different reasons. But a living trust is more difficult to challenge. For one thing, most states require a person to have legal standing to bring a lawsuit. This usually means a person who would have been a part of the inheritance without the existence of a living trust. After this, the person must convince the courts that the living trust was invalid, so the living trust is not enforced. At that point, the plaintiff may inherit a portion or all of the estate according to a particular state's laws. If you are concerned about your assets falling into the wrong hands after your death, a living trust is usually the best choice.

Transferring your assets is more private

If you have a will, then you have a public document. Not only that, but the proceedings of a probate court and the records associated with them are public as well. A living trust is a private matter, so your heirs will receive the assets you wish them to have without the rest of the world knowing about. People receiving an inheritance can become targets for swindlers and con artists. The privacy of a living trust offers protection to your loved ones after your death.

There are many advantages to having a living trust. Depending on your circumstances, it may be a good choice for you. Keep in mind, however, that a living trust cannot be created as easily as a will can. A man or woman can draw up their own will. A living trust is more complex, so you should contact an estate planning attorney to assist you in creating one.

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