Benefits of a Living Trust
A discussion on how to leave your family intact and properly taken care of may not sound so good. You should start thinking of a Living Trust The living trust clearly outlines what it is you wish to do with your estate or assets after you die. The document is almost like a will, but brings about much more advantages. The court through a lengthy process known as probate has to intervene in the case of a will, to ensure effective distribution of the resources or estate as indicated in the document. It may thus cost a lot and take up a lot of time. For a living trust, however, you only require to appoint a successor trustee who then distributes your estate as outlined in the document without court intervention. It, therefore, less cost and time-consuming compared to the will. A will may also include paying court fees, attorney bill and executor fee and thus could consume approximately 5% of the estate.
The living trust takes care of both your privacy as well as the privacy of the family. Clearly, when the will is presented in the court for probate, it automatically gets into the public records.In this case, for a living trust, therefore, no search can reveal how your estate is distributed eventually. By appointing successor trustee, you can keep off the court in your asset affairs even in case of illness or related issues. Also, the living trust will enhance your calmness and peace of mind. With this legal document with a clear outline of your wishes, you are sure that the family is well cared for.Besides, the beneficiaries can appreciate that you have settled your estate and thus enjoy peace of mind.
Although settling the living trust may be a cumbersome and long process pick your successor trustee wisely. Make your living trust checklist so that you do not leave out or miss essential requirements. There are several things in the living trust checklist that you cannot miss out. Start by preparing an inventory of the assets and include liabilities. Be sure, also, that you order five or more death certificates from the funeral home. It is also critical to outline all expenses in the living trust checklist. Further, ensure that each of the beneficiaries has a statutory notice.
It is vital to include the filing of the estate filing returns in the living trust checklist. For each of the persons in the beneficiaries list, ensure to make both preliminary and final allocation of your assets. Finally, let each beneficiary signs the receipts and accounting waivers. Therefore, ensure that each requirement in the living trust checklist is met.