Why should I create a living trust for my assets?

On Behalf of | Jul 6, 2020 | Estate Planning |

When it comes to drafting a will, knowing that your assets and loved ones will be taken care of can bring you significant peace of mind. And while there are many viable reasons for drafting a will, there are other means of protecting your assets and properties as well. A living trust can serve a variety of purposes and, often, can provide you with similar benefits as those of a will.

The multipurpose nature of trusts is one of the reasons people choose to create them. Such purposes include:

  • Avoiding probate: While there are good reasons for probate, the process can at times be lengthy and stressful. A trust will pass the probate stage and could save your family or trusted loved ones a headache.
  • Protection from chaos: Some trusts can be named to a loved one and only released to them upon a certain age. If your child is a trustee, for example, the assets may be protected until they are of an age of responsibility. Furthermore, keeping your assets in a trust may protect your trustee from losing shares in a divorce.
  • Keeping matters private: Because a trust avoids probate, your trust assets are not made public and therefore will only be known by those involved.
  • A backup plan for assets: Having assets in a trust does not have to benefit your estate simply upon your death. In the event of your incapacitation from an accident or condition, your chosen trustee may control the assets on your behalf.

Of course, not all property and assets should go into a trust. Prior to drafting a trust with your attorney, be sure you understand your reasons for doing so.

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