Estate planning can leave people feeling confused. After all, there is a lot to know. You can create an effective and thorough plan if you meet with a lawyer specializing in estate planning services. One tool the lawyer might recommend is a living trust. Here are several things to know about living trusts and why you should use one.
What It Is Not
First, it is essential to know what a living trust is not. It is not a will. A will is a document that tells your family who gets your things when you die. Your family still goes to probate to assist with the legal transfer of the goods.
A living trust is also not the same as a living will. A living will is for healthcare decisions. In it, you name a person to make your medical decisions for you when you cannot make them any longer. You also choose what doctors and healthcare workers do to you when you face specific situations.
If you have a will and a living will, it is still helpful for you to have a living trust.
A Living Trust Eases the Process of Asset Transfer
A living trust is a unique tool used in estate planning. This tool allows you to create an entity, so to speak, that is a living trust. You can transfer the title of your assets from your name to the name of the trust. When you do this, the trust owns the assets. You can then name who gets them when you die. You can make changes to the living trust if you are still alive, and you should update it whenever necessary.
When you die, your family will have fewer challenges transferring your assets to them. As a result, having a living trust eliminates the need for them to go to probate court.
A Living Trust Offers Benefits
While you are not required to have a living trust, it can provide many great benefits to your family. First, it speeds up the process of asset transfer. Secondly, it reduces the expenses your family must pay when settling your estate. Finally, it provides a way to avoid going to court to settle your estate. Living trusts offer many outstanding benefits.
If you are interested in learning more about living trusts and other estate planning tools, reach out to an estate planning attorney in your area.