Living trusts can offer several benefits over wills in estate planning. Firstly, a living trust can help you avoid probate, which can be an expensive and time-consuming process. By placing your assets in a trust, you transfer ownership of those assets to the trust, and therefore, they do not need to go through probate upon your death.
Secondly, a living trust can offer more privacy than a will. Wills become public record upon probate, which means that anyone can access them and find out about your assets and how you distribute them among your beneficiaries. In contrast, living trusts are not subject to probate and therefore remain private.
Thirdly, living trusts can help you plan for incapacity by naming a successor trustee to manage your assets in the event that you become incapacitated, while wills are only effective after your death. Nomination of a successor trustee can help alleviate the need for a court-appointed guardian which can help avoid costly court proceedings.
Overall, the main benefits of having a living trust instead of a will are the avoidance of probate, protection of privacy, and planning for incapacity. However, living trusts can be more complex to set up and require more ongoing maintenance than a simple will. If you are considering a living trust, you should consult with an experienced estate planning attorney to make sure it is the right move for your situation.
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