Trust Litigation Lawyer
More and more people are choosing to establish living trusts over wills these days. A living trust holds your assets in a trust during your lifetime and then distributes them to designated beneficiaries after your death. It costs a little extra to draft a living trust, but the benefits may be worth it. Here’s a closer look at all the advantages of creating a living trust.
Probate is the legal process in which a will is proved in court as a valid document. The probate process can be quite lengthy and delay everyone’s inheritances. In fact, beneficiaries may have to wait months until they can finally receive their inheritances. That’s one of the many reasons living trusts are so popular nowadays. With a living trust, your beneficiaries can avoid the probate process after your death. They may receive their assets in a matter of weeks instead of months.
If you’re a private person, a living trust may be for you. Unlike a will, a trust a private document and doesn’t become a public record. No one will be able to search the public records to find out more about your estate if you don’t want them to.
A living trust may cost more to create than a will because it’s a complex document. However, it may be able to save more money in the long run. You won’t have to worry about going through the probate process, which can help save fees. A living trust is also able to hold up better than a will if someone tries to contest it, saving your estate money.
Hold Money for Minor Children
If you have children, you may want to leave them some money for the future. However, you may not want to give them access to the money until they are mature and responsible enough to handle it. You can do that with a living trust. For example, you may choose to give them part of their inheritance when they turn 18 and the rest when they turn 25.
Another nice thing about a living trust is that it can protect you if you become mentally or physically incapacitated. You can appoint a successor trustee to manage your legal and financial affairs the way you would have wanted. You won’t have to worry about the court intervening.
Provide Creditor Protection
One of the disadvantages of leaving your children’s inheritances in a will is that it won’t be protected against creditors. If your children owe money to credit card companies or a bankruptcy, for example, the court may take the money out of their inheritances. However, if you have a trust in place, it can safeguard the inheritance from creditors.
As you can see, there are so many benefits to establishing a living trust. If you would like to learn more about living trusts, schedule a consultation with a qualified trust litigation lawyer in Cherry Hill, NJ.
Thanks to Klenk Law for their insight into estate planning and living trusts.