The variety of options available to you when you begin the estate planning process can easily overwhelm you. It’s difficult to know who to listen to and what is best for you when others are telling you what you need and how to proceed.
One thing you may have heard is that you should create a trust with all of your assets before you pass away. Why should you consider this, and what advantages does it have?
A revocable living trust can be changed at any time
It lets you put all of your possessions into a trust that you can revoke or amend whenever you see fit.
Throughout the remainder of your life, you will continue to benefit from all the assets and property in the trust. The trust’s named assets pass immediately after your death to the people mentioned within the trust documents.
It can be used to avoid the probate process
One of the most attractive advantages of a revocable living trust is that it can assist you and your loved ones in completely avoiding the probate process. All of your possessions move immediately to the people you intended to receive them upon your death. The distribution of your assets can therefore be done without having to go through probate.
It’s crucial to remember, though, that a living trust does not negate the importance of having a will. You will still need one for anything else you don’t specifically name in the trust.
Have someone to manage your assets when you can’t
Your trustee may manage the trust’s assets on your behalf if you become unable to manage them yourself due to illness or another physical or mental incapacity. This is particularly useful if you own a business. Your trustee can take over the management of your business if you become incapacitated and are no longer able to do so without having to wait for probate.
Regardless of your assets, estate planning is an essential aspect of life. Planning what you want to happen to your property during your lifetime is always a good idea.