You want to take of your family to your best ability even on your death bed. Proper planning is the only way that you can achieve this.
Estate planning can be a difficult and tricky process and if you are considering securing your inheritance you have probably wondered if there is need to have a living trust. Some things that you ought to know about living trusts are :
Do you need a Living Trust
To decide on this, you must first understand what living trust is. Living trust in most simple definition is a trust that becomes effective while the grantor is still alive. Meaning that you will have more benefits from a trust when you are alive than you would receive from a will.
While a will appoints an executor to manage your property after you die, a living trust gives the powers to someone to manage your assets if the grantor becomes incapacitated. A living trust, therefore, provides you with a level of comfort and security that is absent in a will.It is always advisable that you prepare for the event that your mental health might incapacitate you before your life comes to an end. What this means is that if you have any property, assets or savings that you want to manage responsibly, then you should consider a living trust.
Living Trust Helps you Avoid Probate
The the most obvious benefit of establishing a living trust is that once your life comes to an end, your property won’t end up in a probate court for months. In the presence of a will, the process of your assets distribution may take several months via your executor. If you have a living trust, the appointed person will pay any debts that you have and distribute your assets to your heir.
You can retain some Privacy
When the details of your estate end up in a probate court, they can become public. This is different in a living trust as your property can be shared privately. In the case you have property in a different state, a living trust will ensure that there will be no legal processes that will have to be dealt with. With a will, the out-of-state property has to go through a lengthy probate process of that state.
Many people can retire with smart real estate investing; but if you do not think carefully about your property, it can become a hassle for your heirs when you die.
You can Ensure Security
If you become sick or are mentally incapacitated; it is to your interest that all your property we protected. The only way you can truly secure your heir’s inheritance and take care of your family is by making a living trust. But, be wary of a do it yourself living trust.