Chances are you’ve thought about what will happen to your property and assets after you pass away. Many people in Maryland choose to create a will to have their property and assets distributed to loved ones after they die. However, a living trust is another facet of an estate plan that may offer some distinct advantages for you and your family. Yet, there’s a stigma that trusts are tools that only benefit wealthy families.
Contrary to popular belief, living trusts can offer distinct benefits for nearly every family. In its most basic form, a trust is essentially a contract drafted by a legal professional with a named trustee who manages the contents of the trust according to your wishes. What makes living trusts unique is that one can change or amend them during the trust creator’s lifetime. Here are a few more advantages of a living trust.
Avoiding probate
One of the main benefits of a living trust is the ability to avoid probate. Probate is a court-supervised process of dispersing a deceased individual’s estate. The probate process often takes many months to complete and can be expensive. If your assets are in a living trust, you can avoid probate because the trust legally owns and distributes the things you place in it, according to your instructions.
Privacy
The probate process is not only lengthy, but it is also public. Anything that goes through probate becomes part of the public record. Living trusts are private documents between the parties involved, and, since they also avoid probate, they do not become part of the public record.
Saves money
A living trust is a complex legal document, so creating one often costs more initially than drafting a last will and testament. Keep in mind you will also have to transfer ownership of your property and assets to the trust. But, as mentioned above, living trusts allow you to avoid probate, which can potentially save you and your loved ones thousands of dollars in the long run.
Peace of mind
With a living trust, you can establish a clear plan to spell out what will happen to your assets and cherished property in the event of your death or incapacitation. Also, you can use a living trust to protect your assets and property from certain individuals and ensure loved ones with special needs have proper care after you are gone. Knowing that your loved ones are taken care of, your estate is secure and things will be handled specifically to your wishes will undoubtedly give you much-needed peace of mind. If you haven’t thought about what will happen to your estate after you pass, or currently do not have a plan in place, there is no better time than now to get this taken care of. The first step to securing your future is to speak with a knowledgeable attorney who can help draft a plan to fit your needs.