If you are approaching the idea of an estate plan for the first time, you may have various questions and be unsure of which plan is best for you. Some people decide to move forward with a will, while others opt for a trust. Moreover, there are different kinds of trusts. In this write-up, we will look at living trusts and review some of the advantages that come with this type of estate plan. It is important for you to identify which type of estate plan will work best given your personal circumstances beforehand.
Also known as an inter vivos trust, a living trust provides a number of benefits. With these trusts, assets are put into a trust while the person who created it is still alive. Once they pass away, a successor trustee will distribute the assets among beneficiaries. One of the major advantages of a living trust is the ability to avoid the probate process, which can be very time-consuming. Furthermore, this type of estate plan offers more privacy, which is very important for those who do not want the distribution of their estate made public. Moreover, if you become incapacitated for one reason or another, your trustee will alerady be able to make important decisions related to your financial affairs.
For some people, trusts are ideal, while others may decide that a will better suits their needs. You can go over more material related to setting up a living trust by browsing to our firm's page on estate planning.