3 Reasons to Seriously Consider Using a Living Trust to Leave an Inheritance to Your Family

This article is intended for educational purposes only and does not constitute legal advice. For advice on your personal situation, please contact a lawyer.

There are many important steps you can take as part of your estate planning to ensure your loved ones’ financial standing after your death. An important step is to have a life insurance policy in place so that people who depend on you financially are not left behind. Another solution is to consider how you want to pass on your assets to your loved ones.

You have a few choices in this regard. Many people opt for a simple will. If your estate is fairly simple, this may be the best option. But you may also want to consider a living trust.

If you’re not familiar with a living trust, it’s a legal agreement that allows you to transfer assets to other people. Before we go any further, it’s important to note that while you can use online software to create your own will without hiring a lawyer, living trusts tend to be more complicated. So you shouldn’t consider creating one without help.

A living trust can also cost more to set up than a will. And the cost you’re looking at will generally depend on the extent and nature of your assets. But here are some reasons to seriously consider a living trust to seamlessly transfer an inheritance to the people you care about most.

1. You want to control your assets during your lifetime

Over the course of your life, it is not uncommon to change your mind about who will inherit your assets. The benefit of a living trust is that you are able to make changes as you see fit since you retain control of your assets for as long as you are alive.

If there is a divorce in your family, for example, you may remove someone from your trust. If there’s a wedding or grandchildren come into play, you can include them.

2. You want your loved ones to receive their inheritance sooner

When you make a will to pass property to your heirs, your loved ones go through a process called probate, which allows the court to prove the validity of a will. One of the problems with probate is that it can be lengthy. And the more complex your estate, the longer the process can take, delaying the transmission of your inheritance to the people for whom it is intended.

Another advantage of living trusts is that they are not subject to probate like wills are. Setting up such a system could therefore mean faster transfer of assets.

3. You want your family’s finances to be a private matter

Delaying an inheritance isn’t the only problem with probate. A will that goes through this process becomes a public document, so anyone can view the details of your will and see what your loved ones are inheriting.

Because a living trust does not go through probate like a will, the details of the trust remain confidential. If this is important to you – and if you think it is important to your heirs – you may want to consider a living trust for this reason alone.

While a living trust is not your only option for passing on assets, it is worth investigating. It is helpful to consult with an estate planning attorney who can explain what the process might involve and give you an idea of ​​the costs you are considering. This way you can make an informed decision.