The advantages of living trusts include avoiding lengthy and costly court proceedings, minimizing taxes, and transferring assets without probate. Living trusts also allow you to designate a trustee or successor trustee in case something happens to you. This ensures that someone already designated can make decisions for you when needed by state law. Living trusts offer many benefits and protections. Following are five reasons that you should have a living trust.
- Avoid Probate
One of the biggest benefits of an affordable living trust attorney is that it may avoid probate, which is very expensive and time-consuming. However, a living trust allows your assets to pass seamlessly without requiring additional court action. For those who do not want to worry about probate regardless of cost, this is a benefit. If you live in California, for example, costs can rack up quickly.
If you die owning real property, your heirs will need to pay anywhere from 2% to 10%. People prefer to hire a professional and affordable living trust attorney in order to make this process seamless.
- You Can Include Discretionary Provisions in Your Living Trust
These types of provisions usually exempt the trust from having to pay taxes. You can also include a provision in your living trust, giving your trustee the power to make distributions directly when needed for any health care expenses. It will help you avoid paying large medical bills when there is no time for a family meeting or everyone lives too far away to coordinate a meeting.
When you receive health care through Medicare or Medicaid, the trustee can make distributions under your wishes, used for certain types of medical expenses that are not covered by these programs.
- Eliminates Need for Guardianship and Conservatorship
You can avoid guardianship or conservatorship with a living trust because it is revocable and contains discretionary provisions. A guardian will typically be needed when an individual becomes incapacitated and can no longer make their own decisions. Still, the living trust contains a provision that gives your trustee this same power.
- Decreases Paperwork and Prevents Probate
You will have less paperwork to file because currently held assets that are placed into a living trust avoid probate. Once your living trust becomes legally binding, you do not have to go through the process of having someone else take control of your assets, which means that you will typically save on court costs and attorney fees.
Thus, a living trust can also reduce the total amount of time it takes for someone to become vested in your assets, which means that they have the legal right to take control of your estate once you pass away.
- Allows for Flexibility in Your Trust Provisions
When it comes to your estate and assets, you want someone knowledgeable and experienced in handling the legal aspects of these matters. An affordable living trust attorney will help ensure that everything goes smoothly when you pass away or become incapacitated for any reason. Contact one now.
A living trust gives you the flexibility to address any changes that may occur throughout your life without needing to amend your will or take any other formal action that takes time and money. You can change or add provisions to a living trust that were not possible with the last will. You can also make provisions for special circumstances, such as the possibility of your beneficiary becoming incapacitated or having a child with special needs.