Why Choose a Living Trust? Brought to you by Bradley B. Anderson Anderson, Dorn, & Rader, Ltd.
As you research your estate planning options, you’re sure to hear a lot about living trusts. In recent years, the living trust has become such a popular tool that it forms the cornerstone of many people’s estate plans. What are the benefits of a living trust and why would you opt for one as part of your estate plan? Protect and Provide for Beneficiaries The foundational goal for any estate plan is to provide for your loved ones in the event of your disability or death. A living trust allows
The American Academy of Estate Planning Attorneys www.probatebusters.com • blog.wealth-counselors.com
you to do this and maintain some control over their inheritances even after you’re gone. You can protect vulnerable beneficiaries by controlling when and how they access your assets. For example: • Parents of minor children can use a trust to support their children while giving the trustee specific instructions for the use of trust funds, the circumstances under which the children will be allowed to access the funds, and the age at which the funds will be turned over to the children. • A beneficiary who is finan-
cially inexperienced or has a track record of irresponsibility with money can be given restricted access to trust assets, protecting his or her inheritance and preserving it for as long as possible. • A living trust can also be structured to shield beneficiaries’ assets from the threat of creditors, con artists, and divorcing spouses. Avoid Probate One of the best-known benefits of a living trust is that it allows your family to avoid probate. When you die, since your property is titled in the name of your trust,
and not in your name, it is not subject to the probate process. This can be an immense benefit in some states because depending on a number of factors, probate can be a lengthy and stressful process. A trust has the potential to offer a streamlined, simplified alternative. In the event you are incapacitated during your lifetime, a living trust also allows you to avoid “living probate.” Without an effective plan in place, a debilitating illness or injury could land your family in court (Living Trust page 8)
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