Very few Americans actually have a living trust, but they are missing out on several intriguing benefits that come with having one. If you’ve ever wondered about the difference between a living trust and a will as well as the benefits of either, Davidson Law Group has those answers for you.
Living Trust Defined
A living trust, also known as a revocable trust, is a legal document that allows you to keep your assets in a trust for your own benefit while you’re alive but then have them transferred to the beneficiary(ies) upon your death. A successor trustee of your choosing will make sure this happens.
Although a living trust is very similar to a will, a living trust does not have to go through the probate process while a will does.
Benefits of a Living Trust
If you are considering drafting a living trust with your wills and trusts attorney instead of a drafting a will, here are a few of the major benefits to doing so.
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You Could Save Money
Initially, drafting a living trust is more expensive than drafting a will, simply because living trusts are more complex legal documents and require more work. Although you may spend more money upfront, doing so could save your estate money once you have passed. This is because you can avoid the legal costs associated with probate. Which brings us to our next major benefit.
You Can Avoid Probate
Unlike with a will, you can avoid probate by drafting a living trust with your wills and trusts attorney. Additionally, if someone decides to contest your distribution, a living trust is more likely to hold up in a court of law than a will, saving you even more money.
Related Post: How Living Trusts Avoid Probate
It Keeps Your Estate Information Private
A will is a public record so once you die, the details of your will are made known to the public. If you don’t want people knowing all the details about the distribution of your estate, your wills and trusts attorney will suggest drafting a living trust instead of a will.
You Are Protected From Court Challenges
Unlike a will, a court challenge to a living trust is very rare. If someone wanted to challenge the legal soundness of your living trust, it would be much more difficult to do (and very unlikely). If you are worried that someone in your family may try to challenge the distribution of your estate, talk to your wills and trusts attorney to determine the best legal protection for your situation.
You and Your Estate Are Protected If You Become Mentally Disabled
If you become mentally incapacitated, it is very beneficial to have a living trust because your property will either transfer to the control of your spouse or partner (if you made a joint trust) or to the control of your designated successor trustee (if you made an individual trust). This ensures that your wishes concerning your estate and assets are still maintained.
Discuss Your Living Trust with a Wills and Trusts Attorney Today
If you have additional questions, our experienced wills and trusts attorneys would be happy to meet with you and discuss this in more detail. Contact us in Fort Worth, Allen, or Tyler, Texas to schedule your appointment with Davidson Law Group today.