5 Benefits of Having a Living Trust You May Not Know About

benefits of a living trust estate planning trusts

Are you wanting to find peace of mind in knowing that your items are protected while you're still living and beyond? Do you want to learn more about how to distribute your assets to the right people? If so, then you should learn about getting a living trust. 

There are many benefits of a living trust that you'll enjoy. It can help you save money, gives you more security, and grants you relief from the worries of tomorrow. 

See below for several other benefits of having a living trust and how it can help you in your situation. Be sure to consider all of the below benefits of trusts. 

1. More Peace of Mind 

If you were to pass away tomorrow, can you say (in full confidence) that you know where your stuff is going? Are you happy or concerned about whoever's hands that your assets will end up in? 

Creating a will is a great tool, but it doesn't kick in until after you've passed. So even if you change your mind on a few things before you pass, the executor can only use the most recently updated version of your will. A living trust gives you more flexibility. 

This allows you to disperse all of your belongings as you so choose. You'll have more comfort knowing that your property, car, etc will be landing in the right hands after you've passed. You can begin that transition while you're still alive. 

Not only will you have more peace of mind, but your loved ones will as well. They'll have a firm understanding of how your estate is being divided before your death, meaning no unwanted surprises in an already stressful time of grieving. 

2. Future Money for Your Children 

Whether you're able to see your children all the way through to adulthood or not, you want to make sure they're financially protected. Fortunately, there's a way that you can do that even if something unforeseen were to happen. 

Having a living will in place allows you to set aside however much money for your children to have access to as they grow up. 

You can have the money held in place until they become of a certain age to correctly manage it for themselves. You can either chose to give them full access to it all at once or spread out in increments as they age. For example, every five or ten years. 

Take the time to speak with a financial advisor to see how much money you should be placed aside for your child's future. You might also consider listing your child as your 401(k) beneficiary if you die. 

3. Protects Your Privacy 

Many people are surprised to learn that the assets you place inside of your will actually become a part of the public record. 

That's right, ladies and gentlemen, people outside of your family members and close friends can read and look into all the finer details of your belongings and how they're being dispersed after probate court. 

A living trust is completely private, meaning only those that you want to see it will have the benefit of feasting their eyes on it. No one outside your loved ones will ever know the details of your last wishes. If you're wanting to set up a revocable or irrevocable living trust for your estate, be sure to click here to learn more

4. No Probate Court for Your Estate 

For those of you that are unfamiliar with the term, the probate court is used to disperse a person's assets after they have passed. 

Unfortunately, this process can be quite drawn-out and painstaking for your loved ones to go through. Not only that, but there are fees attached to the process. The longer it takes, the more fees your loved ones will have to pay. 

Even worse, those fees are often taken out of your estate. That means that your loved ones will end up with less of an inheritance than you had planned for. Don't leave it up to the probate court. 

Any asset that you put in your living trust will be able to completely avoid the probate court process. The details of your trust will be read to each beneficiary and the asset(s) given directly to them. 

5. Protection While You're Still Living 

Many people will agree that there's a peaceful sentiment to dispersing your assets after you pass away. You can't take it with you, so you want to leave it in the capable hands of your loved ones. 

However, the situation that should scare you more is if you become disabled or unfit to make decisions for yourself later in life. In that situation, you still need protection for your assets while you're living. You need someone to take over control of your assets. 

This is the biggest benefit of a living trust over a will. The trustee that you have appointed will be in charge of managing your assets while you are still alive. Then, once you've passed, they'll see to it that your assets are given to the proper beneficiaries. 

Take Advantage of the Benefits of a Living Trust 

Now that you have seen several benefits of a living trust for you, your assets, and your loved ones, it's time to put one in place. 

That way, you're solidifying the future of your legacy. Your assets will continue to thrive with the people that you love for and care for most in your life, thanks to benefits of a living trust. 

Be sure to browse around our site for more articles on living trusts, as well as many other business topics that you'll find helpful and interesting. We have a wide variety of articles on wills, living trusts, estate planning and much more to protect your finances.

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