A living trust legal document written by you during your lifetime. Just like your typical will, a trust details your desires regarding assets, dependents, and heirs. The biggest difference between the two, however, is that a living trust bypasses the will’s costly process of probate, enabling your trustee to carry out the instructions promptly.
Why a Living Trust?
For individuals who have a somewhat complicated or personal financial situation, a living trust is usually more appropriate than a will. For example, if, at the time of your death, you have substantial assets, a mixed family, closely-held business interests, or property in another state, a living trust will suit your needs better.
You may want to consider hiring an estate attorney to draft your living trust. You’ll spend more money doing so, but you’ll receive peace of mind knowing your final wishes are carried out.
Furthermore, a living trust is sufficient for unmarried people, regardless of financial assets.
The Benefits of a Living Trust
There are three primary benefits to a living trust, including:
- Avoiding probate – A living trust will avoid probate, which is costly and time-consuming. With a will, your estate will enter probate, where court proceedings will determine which assets are distributed according to your wishes. A living trust is faster and more efficient.
- Save money – With a living trust, you’ll pay for the draft by an attorney, if you wish, and little else. The initial cost may be higher than a will, but the long-term savings are worth noting.
- Privacy – First and foremost, a living trust provides privacy. You see, a living trust is not made public; your estate is wholly distributed in private. A will, on the other hand, is entered into public records.