Have you ever thought about using estate planning tools including a living trust to protect your loved ones and your own future? If so, scheduling a consultation with a knowledgeable estate planning attorney is strongly recommended because a living trust has to be properly drafted and funded in order to be valid. People often assume that trusts can do everything, however, not every problem is solved by having a trust.
A trust can address many different issues, particularly when you have an experienced estate planning lawyer on your side who is very familiar with trust language. Here are some of the most important and valuable things that clients often choose to do with a living trust. These include:
- Protecting minor children by holding money in the trust until they are responsible enough to manage it themselves.
- Reducing estate taxes, particularly if your state assesses their own taxes as well.
- Keeping assets inside the family if you are concerned about potential divorce for your beneficiaries.
- Protecting your grown-up children from not being able to manage the money due to alcohol, drug related issues or mismanagement, allows a trustee to hold the money for the lifetime of the child and distribute it as necessary.
- Avoid probate. If you place assets inside your trust during the course of your lifetime rather than relying on your will, you can avoid the probate process and make things easier for your loved ones.
- Ensure privacy within the family. A will that is probated becomes matter of public record along with personal details about you, such as an inventory listing of your assets and the value of those assets. Using a living trust can help to guard against this.
- Protect you while you are still alive. If the trust is funded during your lifetime and you later develop an incapacity, a successor trustee is eligible to manage the trust assets on your behalf. This important for those people who do not have children and those people who are single.
Schedule a consultation with an estate planning lawyer today.