A living trust can be an extremely helpful tool in estate planning and is rapidly becoming the preferred method of estate planning for not only high net worth individuals but individuals with more modest estates as well. A trust is basically an entity, like an LLC or Corporation, which holds assets that are managed by a trustee. Benefits of a trust include:
- Distribute assets to heirs outside of the probate process, which can cost between 5-7% of your estate
- Added protection from creditors
- Reduce estate and gift taxes
- Control of the distribution of assets after your death
- Added benefits for real estate investors
How is a living trust useful to my estate?
A living trust can be most helpful in certain situations including holding real estate assets prior to death. For example, if you have real property such as real estate and investment properties, you do not want these assets to go through probate as their value would decrease substantially. A living trust could be the answer by providing avoiding probate and providing continuity for these assets into the future.
The work that you have accomplished during your entire life comprises your estate upon death. A professionally drafted trust can accomplish your estate planning goals, allow for a greater level of control of your assets, and save the time and expense associated with the probate process. There is not just one type of trust.
There are a variety of trusts that can be utilized to address your specific needs and desires. Schedule a consult to discuss this important estate planning tool in more depth.