What Is a Living Trust and Why It Might Be Right for You

Estate planning is not a one-size-fits-all process. Every family situation is unique, and what works well for one person might not be the best option for another. A living trust is one of many estate planning tools available to help you pass on your wealth, but it’s important to understand how it works and whether it’s the right choice for your family. An article from MSN, “Is a Living Trust Really the Best Way to Pass an Inheritance to Your Family?” delves deeper into the advantages of living trusts and their role in estate planning.

A living trust, also known as a “revocable trust,” is a legal entity created by the person who establishes it, referred to as the "grantor." Unlike other types of trusts, a living trust can be modified or revoked by the grantor at any time while they are alive. Trusts are created by estate planning attorneys, and they are customized to meet the individual needs of the person creating them.

One of the primary advantages of a living trust is that assets placed into it pass directly to beneficiaries, bypassing the probate process. When someone dies, their will must go through the court system where a judge will review the document, approve the executor, and validate the will. Until this process is completed, which can take six months to a year, nothing can move forward. If the decedent had property or assets in different states, these must go through probate in each state, adding even more time and complexity.

A trust, on the other hand, has a designated trustee and a successor trustee. If the original trustee (the decedent) is no longer able to manage the trust, the successor trustee can step in and handle the trust’s affairs, such as paying bills, without having to wait for probate to be finalized. Beneficiaries can receive their inheritance much more quickly, without the delays associated with probate.

Another key benefit of a living trust is privacy. Unlike a will, which becomes a public document during the probate process, a living trust remains private. This protects your family from unwanted attention, including potential scams or unsolicited offers from people hoping to profit from your family’s loss.

Living trusts are also flexible. Life circumstances change, and a living trust can be adjusted as needed. Whether it’s responding to a family member’s divorce, the birth of a child, or the death of a loved one, the trust can be modified to reflect these changes. Additionally, the grantor can access the trust’s assets at any time or even dissolve the trust if necessary. This flexibility is not available with an irrevocable trust.

Meeting with an experienced estate planning attorney is the best way to determine whether a living trust is right for you. There are various types of trusts available, including those designed to protect blended families, make charitable donations, pass wealth to future generations, or support individuals with disabilities. Consulting with an attorney will help you understand your options and ensure you are making the best decision for your family’s future.

At The Werner Law Firm, we specialize in creating living trusts tailored to your specific estate planning goals. Whether you aim to avoid probate, protect your family from delays, or ensure assets are distributed efficiently, our knowledgeable attorneys are here to help. Our estate planning attorneys understand that every family is unique, and we work closely with you to develop a plan that fits your needs and provides peace of mind.

If you have any questions, schedule a free appointment with us through our online appointment page.

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Reference: msn (Dec. 1, 2024) “Is a Living Trust Really the Best Way to Pass an Inheritance to Your Family?”