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4 Reasons You May Want To Consider A Living Trust

31 March 2015 by Kenneth Pierce

When it comes to deciding how to handle something as important as your estate, you should consider the many benefits of putting a living trust into place. This trust is created by the owner of the property, and must be administered by another person. Typically, a living trust is created because the owner isn't capable of managing the assets or simply prefers that another person does. Knowing some of the reasons to set up a living trust may motivate you to get started.

Reason #1: Avoid probate

Who wants to spend a lot of time in court battling about how an estate is divided? It is possible months or years could prevent the distribution of the funds to the right beneficiaries if an estate is in probate.

You can avoid this entirely by choosing a living trust or your estate.

Reason #2: Terms and conditions

Do you want to leave your grandchildren a sizeable inheritance, but are afraid the money won't be spent in a useful manner? If so, you can set specific conditions that must be legally followed before your grandchild can inherit the money.

For instance, your grandchild must be at least 25 years of age before the money can be given. This means the money can't be touched until this person is of this legal age.

Reason #3: Reduce estate taxes

One thing that can drastically reduce the money you can leave the important people in your life consists of estate taxes. These must be paid and are usually based on the value of your estate.

When you take the time to select a trust of this type, you can significantly reduce the amount of taxes that you may be required to pay to the Internal Revenue Service.

Reason #4:  Enjoy privacy

Most people prefer to keep financial and estate matters private. This can be achieved by establishing a living trust that doesn't go through the public court system. A living trust and keep your estate out of a courtroom when you are deceased, and this is important to your remaining family members and maybe event to you, too.

Finally, making the right decisions about your money when you are living is important to do before your death. Be sure to rely on the expertise of an estate planning attorney to guide you through the steps of creating a living trust. Talk to experts like Price & Associates for more information.

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