When we talk about Living Trusts, the first question which comes to your mind is Why do I need a Living Trust? The answer to this question lies in the article.
Here are the 7 Reasons why you should consider a Living Trust.
1. Living Trust to avoid Probate
Probate is a judicial procedure whereby the court determines the inheritors of the assets of a deceased person.
If you create a Living Trust, your property will not have to go through Probate. Your Successor Trustee will step in your shoes to administer and distribute the trust property among your beneficiaries without the intervention of the Court.
2. Protection of Minor Children using Living Trust
In case you have a minor child who is too young to take ownership of your large estate, Living Trusts are a good option for you. You can specify a certain age in your Trust that after reaching this particular stage, your minor children will receive the trust property. For example, at the age of 30 years or 35 years, etc.
3. Confidentiality of Documents using Living Trust
Living Trusts are not Public Documents. No person at any stage can go and find your Trust documents to check how you made the distribution. The Last Will on the other hand is a public document and anyone can see it. Once a document has been dragged to court, it becomes part of the public record.
Living Trust keeps your sensitive information and other details of your Trust safe and secure.
4. Protection of children with disabilities using Living Trust
If your children have any mental or physical disability, a Care Trust can be beneficial for them which takes care of their medical condition and their other needs after you die.
5. Protection of children with challenges using Living Trust
If you are concerned that your children might get involved in activities that are not meant for them, for example, drug addiction, if they inherit a large estate all of a sudden; you can decide the distribution accordingly.
6. Living Trust to Reduce Estate Taxes
If you are facing Estate Taxes on your high-worth Assets/properties, Living Trust is a good option to consider. Estate Tax cannot be imposed on Properties transferred to a Trust as they are then now owned by the Trust and not the Grantor anymore.
7. Living Trusts in events of Illness or Incapacitation
If you are concerned about what will happen to your Estate if any inevitable accident occurs and you might become ill or incapacitated to deliver your own wishes; Living Trust will help you to appoint a Successor Trustee who will take care of these situations and take decisions on your behalf as specified by you.