A revocable living trust puts your assets in Trust for the rest of your life. It also specifies how your assets will be distributed after you die. A Living Trust can allow you to change or cancel it whenever you are able and competent. The finest thing is that you keep full control of your assets even if you are no longer alive or competent.
It would be best if you also thought about establishing a Living Trust. They are as follows:
Living Trusts Can Assist You In Avoiding Probate
Probate is called the court-supervised transfer of assets from deceased individuals to their beneficiaries or heirs. This is necessary if the person dies without a Will yet has assets in their name. An estate in probate must stay open for one year so creditors can bring a claim for reimbursement against the estate. Probate can also be expensive and slow down the distribution of assets to loved ones. Probate can often be avoided if you have Living Trust and transfer your assets to it during your lifetime. The terms of the Trust will govern how your assets are dispersed to beneficiaries.
Living Trusts Can Ensure That Assets Are Distributed To The Designated Recipients
Parents wish to leave their assets to their children. Blended family problems are becoming more widespread. Although a husband or wife may be very attached to their children, the surviving spouse may not feel the same way. Many people are anxious about how the estate will be handled by a surviving spouse who has remarried. If the husband has two children from a previous marriage and the woman has one, he may be concerned that his assets may not be distributed to his children. By Will, you can leave everything to your spouse. A Living Trust allows you to direct your assets to your beneficiaries.
Living Trusts Ensure Privacy
The process of public probate is open to the public. Wills are open to the public. Inheritances can be seen by your neighbors, unhappy inheritors, your children’s creditors, or an ex-son/daughter-in-law. Anyone, from anywhere, can see your Will thanks to the internet. Living trusts can put an end to all of this. Living trusts can be kept confidential and are not need to be filed with the probate judge. No one can view the Living Trust except the grantor (the person who formed it) or the trustee (the person responsible for managing it).
If A Living Trust Is Contested, It Provides More Legal Protection
Wills are more vulnerable to judicial challenges than living trusts. A Will is only valid till the individual dies. A Living Trust is established once the trust document is signed. An unhappy heir can challenge a Will by demonstrating that the deceased was incompetent or under the improper influence when the Will was signed. A Living Trust is more difficult to challenge. Dissatisfied heirs must demonstrate that the grantor was unable, or under duress, at the time the Living Trust was signed. They must also show when each asset was transferred into Trust and the investment decisions and payouts made.
Beneficiaries May Save Money By Using A Living Trust
Because a Living Trust does not require probate, its management costs are frequently lower than those of a Will. If a special-needs child or someone not named in the Will objects to the allowance, probate expenses can skyrocket. Because probate is a public proceeding in Massachusetts, all heirs of the deceased must be notified. Disinherited children may purposefully hinder receiving a settlement from people they were supposed to inherit from.
Living Trusts Can Help To Decrease Or Eliminate Estate Taxes
A person’s taxable estate includes all retirement and bank accounts, life and property insurance, and personal property. A Revocable Living Trust that permits spouses to benefit from the marital exemption might reduce estate tax exposure for married couples.
Incorporating a Living Trust into your estate planning will be influenced by your position, priorities, and values. If any of these advantages appeal to you, you should consult an estate planning attorney. If you are searching for living trust lawyer Encino then no look further, Savin Bursk Law is here to help you. Contact us at savinbursklaw.com.
