It is becoming increasingly popular for people to include living trusts in their estate plans. Unlike a traditional trust, a living trust allows individuals to streamline the legal process. They can transfer assets to loved ones faster and easier than before. in some cases, this can actually save money. Those that are getting ready to plan their estate should ask their attorney about the advantages of a living trust. Below are some reasons to consider a living trust.
Probate law is the process to legally distribute a deceased person’s estate in state court. Many times, probate turns into a long drawn out process and can be a somewhat expensive process. There can be delays in transferring the assets to the beneficiaries. Luckily, the the distinct terms associated with a living trust can help avoid probate completely.
In the event someone contests the distribution that has been outlined in an estate, a living trust offers more protection than a traditional one. This will keep loved ones from having to spend money to fight a contestation. This is why it is important to opt for a living trust. This also allows savings by avoiding the expenses associated with probate.
Some individuals and families are not comfortable with the thought of their personal details and finances being shared in public court. When probate is avoided, there is no reason for private matters to become public record.
Plan for Possible Issues
Unlike a traditional trust, a living trust helps to protect a person if they become mentally or physically incapacitated. Those that get diagnosed with dementia or suffer from a serious stroke, for example, the living trust would include appointees that were chosen before to care for the financial needs and well being. If this were not the case, it would be up to the court to appoint someone.
It is never too early to begin planning an estate. This isn’t something that only the wealthy should be doing either. Those interested in learning more about estate planning and living trusts, consult with Estate Planning of Honolulu LLLC for expert advice. Schedule a consultation and see which options are best for the specific situation.