Five Things Every Person Needs to Know About Living Trusts

Fortin Law Group

Published: January 6, 2020

It is often difficult to think about what would happen to your family after you pass away. You want to ensure that your loved ones receive the benefit of your wealth so you create a handwritten will stating your desires for your financial, real and personal property. What you may not realize is that a handwritten will likely will lead your loved ones right into Probate - a court proceeding where the Court decides who gets your property and when, will take a year or more and will involve fees to the court, administrator and attorneys. Your hard-earned money will be consumed by fees, leaving your loved ones at a loss. Often, a will is the “no plan” of planning. By creating a plan, you can keep your loved ones out of court and conflict (avoiding court fees and costs).

Here are Five Things You Should Know About Living Trusts:

1. You are in control with a Revocable Living Trust. The Court does not decide. You choose the design plan for your legacy while you are alive. You are in control of your money. You decide how your wealth legacy will be passed on to your loved ones.

2. You avoid Probate. A Revocable Living Trust is a legal document that avoids Probate. Revocable Living Trusts provide many benefits and serve to keep your loved ones out of court and conflict (avoiding court fees and costs). Your wealth legacy will transfer to your loved ones in months (not years) and save thousands of dollars in legal fees and costs.

3. You can amend your Revocable Living Trust. At any time before you pass, you can amend or change your Trust and how and to whom you would like your wealth legacy to be distributed upon your death.

4. Your Wealth Legacy is Kept Private. In Probate, your estate and asset distribution become public record for anyone to see. With a Revocable Living Trust, your wealth legacy (i.e. your financial, real and personal property assets) are kept private between you and your loved ones.

5. Your Wealth Legacy Can Be Protected from Subsequent Spouses. If you are married at the time of your death, careful planning can establish an irrevocable or bypass trust to protect your wealth legacy from subsequent spouses.