Two Types of People Who May Benefit From a Living Trust

  • By Admin
  • •
  • 10 Oct, 2017
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A living trust is very different than a will. It is not for everyone, but you may want to consider it if you fit into one of these two categories.

If you are beginning to engage in estate planning, or are just looking to make adjustments to the plan that you already have in place, you may want to consider establishing a revocable living trust. This is very different than just creating a will.
Although both will eventually get the contents of your estate to your beneficiaries, a living trust offers you additional benefits while you are living. A living trust is not for everyone, but you may want to consider it if you fit into one of these two categories.

If You Want to Save Your Family Time and Money

When you die, your estate has to go through probate, a court-supervised distribution of your assets. This allows all of the assets in your estate to be legally distributed to your heirs and beneficiaries, as well as settles the outstanding debt and liabilities that may be against the estate. Unfortunately, this is not always a quick process. The length of time that it takes for your estate to get through probate depends on several factors which include:

  • How large your estate is
  • How complicated the estate is
  • How many heirs or beneficiaries there are
  • Where the estate executor or administrator lives in conjunction to the estate
  • What state probate is filed in
  • If the will is being contested

In addition to this, the court will also have to determine if the estate has any outstanding debt. If so, the court and the estate executor will have to determine which assets will be used to pay this debt. If the estate does not have enough cash to do so, assets will have to be sold before they can be distributed.
All of this takes time. Probate can range from months to years. In addition to this, going through probate can cost your heirs approximately 5% of the value of your estate. When you create a living trust, it will help your estate to avoid having to go through probate. This means that all of your assets will go to your beneficiaries in a much quicker fashion.

If You Want to Remain in Control

Unfortunately, not all of your friends or family members may agree with your decisions on what to leave to whom. These types of disagreements can lead to family challenging your will once you die, and once they do so, it will be up to the court to decide where your assets go. A living trust holds up much better in court than a will does. Although people who disagree with your decisions may still try to challenge, their chances of winning will be greatly diminished.
A living trust will also allow you to appoint a successor trustee. This is a person who will take over and make decisions for you if you are ever incapacitated due to a physical or mental disability. By being able to do this, you will be able to name the person who you feel will have your best interest in mind and not have to wait for the court to appoint conservatorship.
If you decide that you are one of the many people who would benefit from allowing the Law Offices Of Steve C. Benton to assist you in setting up a living trust, just know that you may need a pour-over will as well. This will allow you to direct anything that you have not turned over to the trust to the proper beneficiaries. You may also need to use this tool in order to name a legal guardian for any children who may still be minors at the time of your death. You will be unable to do this as a part of your living trust.
Call the Law Offices of Steve C. Benton today. We will be happy to help you with setting up your trust, as well as any other estate planning provisions that you would like to put into place.

Disinheriting People From Your Will: What You Need to Know

By Admin • December 8, 2017
Estate planning is an important part of life for everyone. It is crucial that you have your financial house in order before you pass away so that everything is handled as per your wishes. One major thing to consider is who will receive an inheritance upon your death. When making your will, you can include those to whom you wish to leave money or property.
For one reason or another, you may decide that you wish to disinherit someone you have included in your will. That is your right, no matter what anyone else may think. There are several things to keep in mind when you intend to disinherit someone from your will.

Living Trusts in California: Frequently Asked Questions

By Admin • August 8, 2017
When you hear the words "estate planning," you may assume this is only an issue you need to face if you're older, or that it is a problem reserved for the wealthy. However, no matter your age or how much money you have in the bank, it is important to protect your assets and loved ones from unnecessary heartaches, squabbles and costs after you're gone.

One of the best options for many people is a living trust. You may be familiar with the idea of a trust or will but not sure what exactly a living trust is and if it is the best option for you and your family. Here are a few frequently asked questions you might have about living trusts.

Protect Your Family By Securing Your Assets - Avoiding Mistakes In Estate Planning

By Admin • June 23, 2017

Facing your own mortality can be a difficult challenge for anyone. It may not be particularly pleasant to imagine the world after you've left it, but if you've spent your life working hard to build a strong financial base, it's important that it can be passed on to your loved ones with minimal restrictions and interference.

Unfortunately, there are some common traps that many people fall into when planning their estates. In some cases, those traps may not even reveal themselves until the estate is executed, by which time it's far too late to fix the problem. The best way to minimize those concerns is to take the time to learn about common traps and ways you can avoid them.

Below, you'll find a guide to common estate planning mistakes that you should keep in mind when working with your attorney. Solid estate planning will be a massive relief to your family and interests after you've passed on and will allow you to leave a legacy that you can be truly proud of.

5 Essentials You Need to Understand About Estate Taxes

By Admin • April 10, 2017
Worried about estate taxes? Want to protect your estate from taxation after your death? Then, proper estate planning  is critical. First, however, you may want to understand a few basics about estate taxes. Here's what you need to consider.

The Importance of Estate Planning

By Admin • February 10, 2017
Too many people neglect estate planning, so that when the time comes, children and family members must face the unpleasant task of determining who will get all of the things you spent your life accumulating. Many people assume that estate planning is only for the wealthy, but the truth is that even if your home isn’t expensive and you don’t have large investments, there are good reasons to consider making plans for your future.