A living trust is a legal document that provides clear instructions on how one’s assets should be disbursed after death. A living trust is similar to a will but does not have to go through the probate process. In a previous blog post, we identified the benefits of a living trust. Today, the wills and trusts attorneys at Davidson Law Group look at the drawbacks and explain why you may not need a living trust.
There Are Other Ways to Avoid Probate
The legal process that distributes a person’s property after death is called probate, which can be time consuming and expensive. A living trust is a great way to avoid the cost and hassle of the probate process, but it is not necessary for everyone. There are a number of techniques to transfer assets to inheritors free of probate within weeks of death. Davidson Law Group is here to help you protect your assets and avoid probate.
Related Post: What Are the Best Ways to Avoid Probate Court?
To decide if you need a living trust, first consider your age. A living trust would make little sense for middle-income, healthy younger people. If you are in your mid-forties or mid-fifties and are in decent health, you probably should not have to worry about probate costs for many years. Remember that a living trust does not apply to you during your life. In the unlikely event of sudden death, you can establish a serviceable will to transfer your property to your loved ones.
Wealth is also an important factor in deciding whether or not to create a living trust. The more money you have, the more you can save for your beneficiaries by avoiding probate. A 45-year-old with $300,000, for example, can decide to wait many years before making a trust.
It also matters what kind of assets you plan to pass on — is it a small business, real estate property, or a valuable art collection? If you are a business owner, you might be more inclined to create a living trust at a younger age. There are certain assets that could cause risks and trouble if they get tied up in probate.
Your Marital Status
Many married couples own their large assets together, and probate is not necessary for those assets. If you are married and you plan on leaving property to your spouse, you should not be concerned about avoiding probate at an early age.
Meet With Your Wills and Trusts Attorneys Today
If you have additional questions about whether a will or a living trust is appropriate for you, our experienced team would be happy to meet with you. At the Davidson Law Group, we will do everything we can to help ensure that your estate avoids probate and is distributed efficiently. For more information, contact our wills and trusts attorneys in Fort Worth, Allen, or Tyler today.