Sometimes the nature of a person’s assets and their goals for distributing their property will require a living trust in their estate plan. Living trusts are legal entities funded with the assets of the trust maker and placed into the care of a trustee who will oversee the trust and ensure that its terms are followed.
There are a few important reasons to consider using a living trust as opposed to a standard estate plan with a last will and testament. These include: avoiding probate, protecting heirs from creditors, and exerting more control over one’s assets and how they are distributed.
Probate refers to the process of administering a person’s estate through the court system. While this process can be quick and uncomplicated, there are many scenarios where going through probate can become both complicated and expensive.
If you’re curious whether you should make an estate plan which aims to avoid the probate process, an experienced attorney can review your finances and goals for the estate to determine the best estate plan for your unique situation.
The other important reason to consider creating a living trust is to protect your heirs from issues like creditors or an inability to manage finances. If you’re concerned that one of your heirs might not be able to manage an inheritance properly, or that their creditors may pursue this inheritance to satisfy a debt, using a living trust may provide you with some options to avoid these situations.
Additionally, the use of a living trust will allow its creator to stipulate exactly how their assets should be distributed and under what circumstances. This may be useful, for example, when one wants to distribute some assets only if certain conditions are met.
Once again, it will be important to speak with an estate attorney about the details of your family dynamic and financial situation to determine which estate plan would be best for you.
At Rosenblum Law our attorneys provide free consultations where we will review your individual situation and provide you with the best estate plan based on this information. Call us today to ensure that your affairs are handled according to your wishes.
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