Wills & Trusts

A living trust offers several key benefits, particularly for individuals planning their estate and aiming to manage their assets and wishes both during their lifetime and after their death. Here are the main advantages of setting up a living trust:

• Streamlining Asset Transfer: One of the primary benefits of a living trust is that it helps avoid the probate process. Probate is the court-supervised procedure for distributing a person's estate after death, and it can be time-consuming, expensive, and public.
• Private and Faster Distribution: With a living trust, assets held in the trust are transferred to beneficiaries directly, without going through probate, which can save time (often several months or even years) and avoid probate fees.

• Control While Alive: A living trust allows you to retain full control over your assets during your lifetime. You can act as the trustee (the person who manages the trust) and can buy, sell, or transfer property as you wish.
• Flexibility: You can modify or revoke the living trust at any time while you're still alive, giving you the flexibility to adjust your estate plan as circumstances change.

• Management if Incapacitated: If you become incapacitated due to illness or injury, the successor trustee (who you designate in the trust) can step in to manage the trust’s assets without the need for a court-appointed guardian or conservator. This provides a smooth transition and ensures your finances are managed according to your wishes if you can no longer handle them yourself.

• Avoid Public Disclosure: Unlike a will, which becomes a public document once filed for probate, a living trust remains private. The details of your trust, including your assets and how they are distributed, are not made available to the public. This can help protect the privacy of your estate and beneficiaries.

• Conditional Distributions: With a living trust, you can set specific conditions for how and when your assets are distributed to your beneficiaries. For example, you can designate that funds are to be distributed when a beneficiary reaches a certain age, completes an education, or meets other conditions.
• Ongoing Management: Trusts can be structured to continue even after your death, providing long-term management of assets for beneficiaries, especially minors or those who might not be financially responsible.

• Tax Planning: While a living trust doesn’t automatically reduce estate taxes, it can be a tool used in more sophisticated estate planning to minimize tax liabilities. For example, a well-designed living trust can help with tax strategies, like creating sub-trusts for spouses or beneficiaries to take advantage of tax exemptions.

• Less Likely to Be Contested: Wills can be contested by heirs, leading to delays and potential legal battles. A living trust is generally harder to contest because it does not go through probate, and the creator of the trust (the grantor) is usually alive to explain their intentions.

• Simplicity of Asset Transfer: When the trust's creator passes away, the successor trustee can transfer the assets without needing to go to court. This process is typically quicker and simpler than probate, benefiting the beneficiaries by giving them quicker access to their inheritance.

• Providing for Disabled Beneficiaries: A living trust can be structured to provide for beneficiaries with special needs without disqualifying them from government benefits, such as Supplemental Security Income (SSI) or Medicaid.

• Avoiding Guardianship: If you become mentally incapacitated, a living trust avoids the need for a court-appointed conservatorship, giving the designated successor trustee authority to handle your financial matters directly, which can be quicker and more efficient than a court process.

A living trust offers benefits such as avoiding probate, maintaining privacy, providing for incapacity, and enabling you to retain control of your assets. It can also help ensure a smoother transition of assets to beneficiaries upon your death, offer specific distribution instructions, and provide peace of mind regarding financial management during periods of incapacity. While a living trust can be an essential part of a well-rounded estate plan, it is best used in combination with other estate planning tools, such as a will, power of attorney, and healthcare directives.