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What are the advantages of having a living trust instead of a will in estate planning?

Picture of Chris Battis By   ·  1 minute read

Advantages of having a living trust instead of a will in estate planning:

  1. Avoidance of probate: A living trust can help avoid the lengthy and expensive probate process. Probate is a legal process that is required by law to transfer assets from a deceased person to beneficiaries named in their will. A living trust, on the other hand, does not require probate because the assets have already been transferred to the trust.
  2. Privacy: Since a living trust does not go through probate, it is a private document and does not become part of public record. A will, on the other hand, becomes part of public record once filed for probate.
  3. Flexibility: A living trust can be amended or revoked by the person who created it at any time during their lifetime. This allows for flexibility in case the person changes their mind about the distribution of their assets.
  4. Protection against incapacity: A living trust can also provide for the management of assets in case the person becomes incapacitated. If the person is unable to manage their own affairs due to illness or injury, the successor trustee named in the trust can manage the assets on their behalf.
  5. Reduction of estate taxes: Depending on the size of the estate, a living trust can be used to minimize estate taxes. Proper estate planning can help reduce the amount of taxes that beneficiaries will need to pay.

Potential limitations or exceptions:

  1. Cost: Setting up a living trust can be more expensive than creating a will. However, depending on the size of the estate and the complexity of the distribution of assets, a living trust may be a more cost-effective option compared to probate.
  2. Complexity: A living trust can be more complex to set up than a will, and may require ongoing management during the person's lifetime. It is important to have a qualified attorney assist with the creation and management of a living trust.

Suggestions for further action:

If you are considering a living trust as part of your estate planning, it is important to consult with a qualified attorney who can assist with the process. Additionally, it is important to regularly review and update your estate plan as necessary to ensure that it continues to meet your needs and goals.