What are the advantages of a living trust?
One major advantage of creating a living trust is that it may avoid the necessity of a guardianship in the event that the settlor becomes incapacitated. A living trust is also useful if the settlor owns property in different states. After the property is transferred to the trust, then there should be no need to administer probate proceedings in the foreign state. Substantial estate tax benefits may be realized by proper use of a trust.
A living trust provides benefits that are not available with a will alone or in intestacy (death without a will). A trust can avoid probate upon your death. A will must be verified by the probate court before it can be enforced. Further, because a will can only go into effect after you die it provides no protection if you become physically or mentally incapacitated. The court generally will take control of your assets before your death.
• Can be changed or canceled at any time, • Avoids probate and related costs, • Allows faster distribution of assets to beneficiaries, • Provides maximum privacy (a will is a public document), • Allows for Professional Asset Management with a corporate trustee. • More difficult to contest; wills are much easier to contest. • Lets you keep control while you are living, • Helps avoid the necessity of a conservatorship upon your incapacity, • Avoids problems of joint ownership, • Protects minor children from court-imposed guardianships, and • Can protect dependents with specific needs, • Used to avoid unintended disinheritance of a child from a previous relationship by a joint tenancy.
Same benefits as a will with none of the disadvantages PLUS: • Avoids probate • Avoids multiple probate if you own property in more than one state • Can reduce or eliminate Federal/State estate taxes • You can be your own trustee until your death when a successor trustee, whom you have named, takes over • Brings all your assets together under one plan • Allows quick distribution of assets to your beneficiaries • Assets can remain in your Trust until beneficiaries reach the age(s) at which you want them to inherit • May be changed or canceled at any time • Prevents unintentional disinheriting and other problems of joint ownership
