If you currently have a last will and testament, you might think you covered your bases with your estate plan. While a will does cover some of the bases, it might not provide all the protection you need. Many people use living trusts in addition to their wills, as living trusts take estate planning one step further. Here is an explanation of what a living trust is and the benefits of having one.
What It Is
The first thing to understand is the definition and purpose of a living trust. A living trust is a tool people use in estate planning, but it is not the same as a will. A trust is a separate entity, in a sense, that you create when planning your estate. To create one, you must visit an estate planning attorney. The attorney creates it, and you place your assets in it. When you place your assets in the trust, the trust takes the ownership rights of these assets from you. You legally do not own the items any longer, but you manage the trust, so you still have rights to the assets.
The Benefits of a Trust
Understanding what a trust is can help you determine if you need one, but learning the benefits can provide more information to help you decide if you need to create one. One of the top benefits of a trust is the ease it offers for asset transfer. When you die and have assets in the trust, your family members will have no trouble collecting the things you want them to have after you die. Asset transfer is the leading benefit of living trusts because trusts make this process simple.
As a result, your family can save money and time after you die when settling your estate. They will not have to go to probate court to wait for a judge to make decisions, and they will not have to fight with family members about your things.
The other benefit of a living trust is that you can change it anytime you wish. If you want to add or remove things from it while you are living, you can contact your lawyer to find out your options.
To learn more information about the benefits of a living trust, and what it can offer for you, reach out to a company such as Abom & Kutulakis LLP for more information.