It’s challenging to think about the contingencies necessary for a carefully considered estate plan. Most people don’t want to think about their death or the disputes that commonly envelope families once they’re gone. Living trusts are tools that can give you more control over your estate. You want your family to get the funds they need in a time of crisis. There are ways to efficiently distribute those assets after you’re gone without removing them from your current use.
The importance of naming a successor trustee
It is essential for those considering an estate plan update to assess their estate’s risk factors that might hamper their future finances. If you eventually become incapacitated, you can name a successor trustee through a revocable trust to manage finances and eventual asset distribution. Additionally, a living trust can beneficially affect an estate in three critical ways:
- Complex estates can spend much more time in the probate process. For those who have significant assets in company stock or real property, asset division duration can be drawn out and extensive.
- A living trust can help you keep certain assets from going through the probate process. It allows a person to choose their beneficiaries while maintaining control of those assets while they are alive. Living trusts are revocable trusts, which means that they can be altered or canceled according to your needs as you age.
- For those concerned about privacy and disclosing information about their estate and beneficiaries, a living trust can keep an estate confidential.
Make sure loved ones are protected
It can be hard to speak to a loved one about updating their estate plan. The probate process is a costly procedure that can delay much-needed funds to family members. No matter your health status or age, it’s always a good time to update an estate plan to make sure your beneficiaries are protected.
