Living Trusts Expounded

A living trust, also known as a revocable trust, is a written agreement where a trustee is appointed to manage any property put in trust for the guarantor. To avoid a financial disaster in the future, you should have a living trust. However, 6 in 10 adults do not have a living trust despite its importance. This means that their property is lost. When you have a living trust, all the assets will be transferred upon your death to the guarantor you have chosen. You can place any valuable items in trust, including investment accounts, houses, and vehicles. Below are some of the reasons why a living trust is essential.

Guaranteed Privacy

When you have a living trust, you will avoid the probate court. Hence, you will be assured that the public will not know about your assets. Trust transfers mainly occur in the office. This is unlike the last will, which will be made public immediately after entering a probate court.

Helps You Avoid the Probate Court

Probate is the legal process supervised by the court where all the deceased's assets are distributed. Before the distribution, individuals have to pay fees, including legal, inventory, and executor fees. The legal process also puts your family through several probate proceedings if you have different properties in different areas. This takes  time and is expensive. This is not the case when you have a living trust, which makes the process swift and affordable since the designated successor accepts and distributes the assets.

Comes in Handy When You Are Incapacitated

The successor trustee you picked will be the manager of your assets when you are ill. This will prevent the involvement of the court. Moreover, you can retain control of your wealth if you believe you can handle your property in your trust.

Avoid Stress

After writing the agreement and stating how you want your wealth to be distributed, you are given the laid-out plan to go through and accept. This gives you a chance to determine if you may have excluded any of your loved ones from the will by mistake. If you have, you can rewrite it and include everyone you want since it can be changed at any time. In addition, you can cancel your revocable trust if you realize you made the wrong decision. You will live in peace since you know the right people will inherit your assets.

Final Thoughts

When you decide to create your living trust, consider online living trust services.