Let’s face it, death is typically not a subject that most Texas residents want to talk about. Nothing can put a damper on your day quite like contemplating your own demise. Yet, death is inevitable and something that will happen to all of us. If something is a guarantee, it only makes sense to prepare for it.
However, far too many people procrastinate when it comes to estate planning, simply because they think it’s not important or they think they have plenty of time. If you died today, wouldn’t you want your assets and most prized possessions to go to the people you love the most? Without an estate plan, there’s no guarantee the court will pass down your property and assets as you intend. Here are a few reasons to consider creating a living trust.
What is a living trust?
In its most basic form, a trust is an arrangement that allows a third party, or trustee, to hold assets on behalf of beneficiaries. Although there are many different types of trusts, they fall into two main categories: irrevocable trusts and revocable, or living, trusts. The reason many people choose a living trust is that it allows you to change the trust, or revoke it entirely, at any time.
Controlling assets
You can change or modify a living trust whenever you like, so it allows you to maintain control over your assets. This is typically a big reason why many people choose living trusts as opposed to irrevocable trusts. With irrevocable trusts, you give up more control over your assets since you cannot change these types of trusts.
Avoiding probate
The ability to avoid probate is a primary reason why many people choose to create a living trust. Probate is the court-supervised process of distributing your estate. The probate process can take many months and is often expensive. However, if you have a trust in place when you die, your property and assets can be transferred directly to your beneficiaries without having to go through probate, thus saving your loved ones time, money and hassle.
Protecting your privacy
Not only is the probate process lengthy and expensive, but it is also public. Since a living trust avoids probate, it protects your privacy as well. Living trusts are private documents and do not become part of the public record, so no one can search public records to learn about the distribution of your estate.
Creating an estate plan
Every family can benefit from having a comprehensive estate plan. A living trust is a tool that you can use to manage your estate and ensure that your property and assets pass down to your loved ones as intended. However, a trust may not be the only estate planning document that you need. If you have questions or want to know more about securing the future for your family and loved ones, there is help readily available.
