If you are currently planning your estate, you may be considering additional estate planning strategies to help your beneficiaries to maximize their inheritance. You’ll probably know that the main disadvantage to wills is that all assets must go through the probate process, which can be both costly and lengthy.
If you are interested in avoiding the probate process, creating a living trust could be very beneficial. Living trusts are entities that hold assets during a person’s lifetime. When the person dies, the assets are transferred to the designated beneficiary. The following are the top benefits of creating a living trust.
You will likely save money
Holding your assets in a living trust will mean that they will not be subject to probate fees at the end of your lifetime. If you have a large estate, probate costs can be huge, and these costs will be taken out of your loved one’s inheritances.
Your estate will avoid probate
Probate is not just costly; it can also be a very stressful process for a deceased person’s loved ones. This is why many estate planners want to be safe in the knowledge that their loved ones will not have to navigate the lengthy probate process before gaining their inheritance.
You will be able to plan for incapacitation
You can designate a person as a successor trustee who will be able to step in and manage your affairs if you become incapacitated.
If you are starting to plan your estate, you should make sure that you have a good understanding of the different estate planning strategies so that you can take informed action.