Legacy Assurance Plan Of America is sharing the basic concept about avoiding probate with living trusts. If you research the topics of living trusts and avoiding probate long enough, you will find what seems like an endless array of viewpoints regarding the need for creating such an estate plan. Much of this discussion centers around whether the cost, in terms of time and money, of probate is great enough to warrant going to the effort to create a trust and avoid the probate process. This focus misses a key point: namely, that your living trust offers more advantages that simply saving the time and money associated with the legal process of estate administration. There are other benefits of your trust that, depending on your family’s situation, can be invaluable. A carefully crafted and customized estate plan can help you ensure that you’re not missing out on any of these important benefits.
One benefit relates to privacy. In most states, probate estate files are open to public inspection. Anyone who takes the effort to travel to the court clerk’s office can view all of your estate’s information, discovering the amount of wealth in your estate, who your beneficiaries are and the amount you’ve left to each of your beneficiaries, among other sensitive information.
If you are concerned about keeping this type of information private, a living trust may provide substantial benefit. In most places and most situations, revocable living trusts are not matters of public record and not available for just anyone to view. Whether you’re seeking to keep your family affairs away from public view, or trying to protect your beneficiaries from potential predators, this added element of privacy could be a significant advantage.
Additionally, if your family affairs are complex and potentially contentious, then avoiding probate with a trust may be very helpful. Launching a will contest can be fairly direct. The estate’s personal representative has already created a court case by opening a probate administration file. All any disgruntled person needs to do to contest that will is show up and lodge an objection in the probate court.
With trusts, it is not as simple for the challenger. Settling a trust after the trust creator dies does not, in most cases, require filing anything in court. While the challenger can contest the validity of the trust or the propriety of the trustee’s actions, he or she must take a greater degree of initiative to open a court case and file a valid complaint in an appropriate jurisdiction.
Additionally, your living trust offers you benefits during your lifetime that a will simply cannot provide. By definition, a will only takes effect after you die. A trust, on the other hand, can provide direction both after your death and during your lifetime. Your trust can be structured to give your successor trustee control over the assets in your trust if you are still alive but have become mentally incapacitated. This allows for a seamless and straightforward method for managing your financial affairs without the need for a court proceeding to appoint a conservator or a guardian of your estate, which can be stressful, expensive and time-consuming.
Summary of Legacy Assurance Plan Of America : A great deal of focus., when it comes to estate planning, goes toward creating a plan that will be the least complicated, most efficient and least expensive way to distribute your wealth to your intended beneficiaries when you die. But careful estate planning looks beyond just these factors, because creating a living trust may help you to take advantage of the all the benefits such an estate plan can provide, including maximizing privacy, minimizing the chances of an estate plan contest and reducing the likelihood of the need for a conservatorship/guardianship court proceeding.