Estate planning tends to be a complicated topic that leave many people with more questions than answers. Do I need a trust? Is a will necessary? What exactly is a power of attorney? Many times we are afraid to ask these questions because they center on the topic of our own death. However, estate planning is one of the most important steps a person can take to ensure that the assets and property they have worked a lifetime to earn gets passed onto future generations.
Why Choose a Living Trust?
One of the first steps in the estate planning process is to establish a trust which controls the disposition of your assets rather than a will. The documents are similar as both determine how your affairs, assets and property should be handled and distributed after you pass away. However, the greatest benefit of a living trust over a will is the fact that a trust avoids the probate process, while a will does not. Letting the courts decide how your assets are distributed will turn into a lengthy process and extremely costly procedure that can take eight to twelve months in court before your family can inherit anything. With a living trust, the process ends up being significantly quicker and only takes weeks to resolve. If you own property in other states, a living trust will be especially advantageous as it can help your family avoid multiple probate situations.
Probate can be quite expensive, in addition to being lengthy, and the administration process is often estimated to cost between 3 and 10 percent of the estate’s total value. Creating a living trust will help you opt-out of the probate court system and avoid expensive (and unnecessary) court costs and legal fees. Living trusts are easy to set up, maintain, or even cancel, and are typically harder to contest in court than a will (a civil lawsuit is required).
What Are The Benefits of a Living Trust?
In most cases the administrator of a living trust will typically be a spouse, however, if a person is unmarried or the spouse is unable to serve in that manner, a trusted friend or other relatives can serve as a trustee. A living trust, unlike a will, which is a matter of public record, also allows your family to handle their family affairs privately and protects against the advances of disgruntled heirs or unscrupulous solicitors. Wills simply do not offer the same level of legal protection for a person’s assets.
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A living trust will provide maximum control over your personal matters and financial affairs, both while you are living and after you pass away. A trust also offers a quick, easy, and cost-effective way to distribute assets to family members and heirs while also allowing you to decide who will administer the estate during the entire process. A living trust will only make your family’s lives easier in the event of a sudden death or emergency situation, and being prepared now is much better than having to fight through the court system to resolve a matter involving your own assets.
When you are ready to provide a bit of security and peace of mind over your finances and family’s future, give our team of experienced estate planning attorneys at Elder Law Services of California a call at (855) ELDER LAW for a FREE consultation today! We look forward to working with you to secure your assets for future generations.
of California, APLC.