Planning your estate may seem like a daunting task. There are ways, however, to simplify the process and ensure you have your affairs in order. A living trust is just one way you can organize your property and assets.
Whether you have recently married or you are retiring from a career, creating a trust may be beneficial to your estate.
What is a living trust?
A living trust is a tool that organizes and controls your property and assets while you are living and when you pass, according to The Balance. In a revocable trust, you are able to maintain control of property and assets after you place them in the trust. If you place items in an irrevocable living trust, on the other hand, you transfer ownership of the property and assets to the trustee or the manager of the trust. You can also appoint a trustee to oversee the trust and ensure everything is handled correctly.
What are the advantages?
While a living trust is not beneficial in every situation, there are some definite advantages to adding one to your estate plan. These include the following:
- Keeps matters private as a trust is not a matter or public record
- Avoids a lengthy probate process
- Transfers property and assets directly to beneficiaries
- Avoids conservatorship or guardianship of the estate
Trusts also allow you to place certain restrictions on how you would like your assets and property distributed. For example, you may notate that a beneficiary receives a certain amount each month or year. You may choose to pull out the full amount after the beneficiary turns a certain age or graduates college. This helps you maintain control of your assets.