Have you ever considered establishing a living trust, but you don’t know what the benefits are, or whether you want/need one? Let’s discuss the benefits of establishing a living trust and why you should consider one!
Establishing a Living Trust
Let’s dive in a take a look at some of the high level benefits of establishing a living trust! Hopefully this information can help you decide if a living trust is a wise choice for your assets.
What is a living trust?
A living trust is a written legal document through which your assets are placed into a trust for your benefit during your lifetime and then transferred to designated beneficiaries upon your death by your chosen representative.
What are the benefits of establishing a living trust?
It can help you avoid probate. A will alone will not protect your estate from probate. If your assets are not in a living trust when you die, or do not otherwise pass by the “beneficiary designation”, and the total of such assets exceed a specified threshold (currently $150,000), they would be subject to probate.
It’s a faster distribution of your assets to your beneficiaries. With a living trust in place your estate does not go into probate. Your representative will pay your debts and then distribute your assets according to your wishes.
A living trust can be a more cost effective way to handle your estate. With a living trust in place the process is quicker, easier, and less expensive. It’s often a better way to make sure your assets are passed directly to your beneficiaries without so many of the fees, taxes, and other financial burdens.
Establishing a living trust can also give you a bit more privacy. Because the trust would not be under the direct management of the probate court, your assets and their value as well as your beneficiaries identities, would avoid becoming public record.
How can I establish a living trust?
I think it’s safe to say that I’m not an attorney nor am I an accountant. I’ve just covered a few of the high level benefits of establishing a living trust. My goal is to show you how you can protect your assets (mainly your real estate assets) by informing you of the benefits of a living trust.
To establish a living trust and/or to learn more, consult your accountant and your attorney for more details!
For all of your real estate questions (buying, selling, and investing) I can be reached at 949-413-6967! I’m always happy to chat with you about your real estate needs, goals, and concerns!
Do you have a video about establishing a living trust?
You bet! If you prefer to digest this information in video form, check it out here: