How does a living trust work

Most people spend at least one-third of their life working hard to earn a living. You work to afford day to day expenses or save up for a vacation; you may even plan ahead to take care of your loved ones after you pass on. A will allows you to define your wishes for after you die; but you may worry about costs, taxes, and waiting time. If this applies to you, a living trust might suit your needs.

What is a Living Trust?

A living trust is a legal document that allows for an easier transfer of assets by avoiding the probate process.

A living trust offers benefits in certain situations while you’re still living. A named trustee can manage your assets if you become incapacitated, due to accident or illness. This can avoid a lengthy court-appointment process.

While a will can spell out how you want to transfer your assets, it may end up going through probate. A living trust avoids this, potentially saving your loved ones a significant amount of money in costs and fees. They’ll also save time and hassle by skipping the judicial process. A drawn-out legal process can take months, leaving your family scrambling to figure out how to pay a pile of bills while they wait for your estate to be reviewed and settled by a judge.

Trusts allow for better control of your assets. You can include property, assets, and even businesses. It’s necessary to update your deeds and titles to the name of your trust, or those items may end up in probate.

Who Can Create a Living Trust?

Estate planning is for everyone! There’s no minimum age or income level to create a living trust. It’s one of those things in life, like insurance, that you want to have in place before you need it.

Creating a living trust can help give you the peace of mind that if something happens, your assets will be accounted for and your family will have less burden to manage complex legal issues while grieving.

Advantages of a Trust

One of the biggest advantages of creating a living trust is time. Like any court process, probate can be long and frustrating. You can reduce the emotional strain on your family by setting up a living will so they can avoid going to court.

Time and money are factors in most decisions. In addition to a living trust saving time, you can potentially preserve some of your wealth. A living trust can help reduce estate taxes for a married couple in certain situations. You also save on court costs and fees that the probate process requires.

Estate planning documents can help give you and your loved ones peace of mind. By setting everything up before you pass on, you avoid fears about what happens when you have no control. This can help everyone feel more secure. If you’re ready to create a living trust, contact Ogborne Law today.