With so many financial and testamentary instruments to choose from, people often struggle to get started with an estate plan. The attorneys at Clear Counsel Law Group have some recommendations about the most vital elements of an estate plan.
But for those that want to create a more lasting plan that better serves your future and benefits your heirs a living trust has many benefits. Here are five benefits to consider.
Direct Control
With a revocable living trust, you retain control over your assets while alive and after you are deceased. Other estate-planning documents, such as wills, only come into effect once you are deceased. With a living trust, you control your assets now and in the future. If, unfortunately, something were to happen to you that left you incapacitated and unable to control your own affairs, the living trust would direct a trustee (of your choosing) to speak and act on your behalf. Without the living trust, there could be complicated court proceedings to determine who to place in control. Courts often appoint a close family member rather than a person you trust and would want to control your health, assets, and affairs. Family is not always the best for making emotional decisions about healthcare and financial decisions, especially if they hold views opposite of yours.
Saving Money
Less of your hard-earned money will go toward paying court and attorney fees. The state charges a fee to settle estates through the probate courts in addition to attorneys’ fees and taxes. You can avoid paying these fees by planning ahead and working with an experienced estate planning attorney to establish a living trust for a fraction of the cost.
Fewer Delays
Distribution of the estate assets to your beneficiaries can occur upon your death without delay. If you use a will to distribute your assets, it could take as long as two years for beneficiaries to receive their bequeathments. If you have no will, state intestacy laws can result in your assets being distributed to family only, or go to the state. By creating a living trust, you can avoid waiting for the probate court to settle disputes and handle your affairs. Will disputes can last for years as each potential beneficiary makes a case for what they should receive and why. Meanwhile, your loved ones wait in limbo without access to anything until the courts have worked through the matter.
Investment Flexibility
Your trustee will have flexibility to take the necessary action with your assets while still governed by your wishes codified into the living trust. If there are potential investment opportunities that will increase the value of your portfolio, the trustee can have the necessary authority to buy or sell assets to get the most out of your money. Other estate documents are slower to enact change or do not allow for change.
Easily Make Changes
A living trust provides you with the maximum flexibility to make desired changes to your estate plan. You can decide you want to add assets, remove them, or determine you want to dissolve the trust at any time. Amending other estate documents often involves revoking older documents and putting new ones into place, a slower, more complicated process.
For all your estate planning needs, contact Clear Counsel Law Group. There is no telling what challenges life may throw your way next, with a free consultation you can get onto the right path for your estate and start planning for your future.