A Lancaster Attorney can provide a wealth of knowledge about the benefits of living trusts. Living trusts, also known as revocable trusts, are legal entities that hold ownership to your property and assets while you’re alive and distribute them after your death. They offer several advantages over traditional wills, which makes them an attractive estate planning tool.
One significant benefit of a living trust is the avoidance of probate. Probate is a lengthy and often costly court process where your will is validated, debts are paid off, and remaining assets are distributed to beneficiaries. By transferring ownership of your assets into a trust while you’re alive, those assets bypass probate upon your death because technically they aren’t part of your estate anymore. This results in quicker distribution to beneficiaries and reduced costs associated with court fees and attorney services.
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Living trusts also offer privacy that isn’t available with wills. Wills become public record once they enter probate; anyone can access information about who inherited what or how much debt was left behind. On the other hand, details about living trusts remain private because they don’t go through probate.
Another advantage provided by living trusts involves control over asset management during incapacity. If you become https://jarvisfirm.com/locations/lancaster-estate-planning-attorney/ unable to manage your affairs due to illness or injury before death, a successor trustee whom you’ve appointed takes over management duties for the trust’s assets without needing court intervention.
In addition to these benefits, living trusts provide flexibility in terms of changing or dissolving the trust at any time during life as long as you’re mentally competent (hence why it’s called “revocable”). You have complete control over all aspects including how it’s structured, who serves as trustee(s), what happens if someone predeceases you etc., until either mental incompetence or death occurs.
Finally yet importantly comes tax efficiency – particularly relevant for high net worth individuals facing potential federal estate taxes upon their deaths. While these taxes don’t apply unless your estate exceeds a certain value (currently $11.7 million as of 2021), living trusts can help reduce potential tax liability by removing assets from your taxable estate.
In conclusion, the benefits of living trusts are numerous and cover several aspects including probate avoidance, privacy, control during incapacity, flexibility and potential tax efficiency. However, whether or not a living trust is right for you depends on individual circumstances such as asset types, family situation and personal preferences among others. Hence it’s always wise to consult with an experienced Lancaster Attorney who can provide personalized advice based on your unique situation.
Jarvis Law Office, P.C.
904 N Columbus St, Lancaster, OH 43130
740-746-1260
