Living trusts are private legal documents, whereas a living will features documents and proceedings that are public. Living trusts allow you to control your estate while you are still living and to control who will handle your estate upon your death. There are several advantages for you if you are considering setting up a living trust.
One of the main benefits of a living trust is avoiding probate. When you have a living will, it must go through probate in order for your assets to be distributed; however, this is not the case with a living trust, as it doesn't go through probate at all. This allows your assets to be distributed to your heirs in a quicker manner than with a living will.
Another advantage of a living trust is that it can help you manage your estate not only in the event of your death, but also in the event you become mentally incapacitated or mentally incompetent. In your living trust, you can designate how your mental incapacitation or mental incompetence is determined, such certification by your own doctor. In this case, none of your assets are distributed, but whomever you appoint as your trustee will be responsible for taking care of your property and your finances.
If you have a living will and become mentally incapacitated or mentally incompetent, your family would have to petition the court to appoint a conservator to handle your property and finances.
Allowing Flexible Distribution
A living trust provides you with flexibility on how your assets are distributed. This means that say you have a daughter that doesn't handle money very well or a grandson doesn't make sound financial choices. You can include in your living trust an option to disburse the money to them in payments such as monthly, quarterly or yearly. This way, you can ensure they won't receive the funds in one lump sum payment.
Allowing Family Harmony
A living trust can help avoid possible family conflict when your estate is being settled. That is because living trusts are customizable so you can tailor your trust according to your own needs. A trust allows you the ability to leave your beneficiaries specific items and specific monetary amounts. With everything detailed in your living trust, your family will have very little to argue over.
While you may find that setting up a living trust may initially cost you more than if you were setting up a will, the reason for this that a trust has provisions not just for when you pass away but also while you are still alive. A living will only has provisions in place for when you pass away and not while you are still alive. There are so many advantages to having a living trust, so it is something everyone should at least consider. For more information, visit a site like http://www.lynnjackson.com.