Benefits Of Using A Living Trust

Estate planning entails the use of many different legal documents and tools that can help ensure your family is cared for after you are gone. Estate planning can also ensure that your interests are protected during your lifetime. Wills are often the first document people think of when planning their estate, but there are others, as well. Trusts are a great way to ensure you control your assets during your lifetime, and that they can transfer easily to your loved ones after you pass away. Below, our Daytona Beach wills and trusts lawyer outlines some of the biggest benefits of creating a living trust.

Asset Protection 

A living trust does not protect your assets from creditors and lawsuits during your lifetime. However, living trusts are a great way to protect your assets for your beneficiaries after you pass away. Upon your passing, the trust becomes irrevocable and creditors cannot make a claim to the property within it, so the assets can transfer to your loved ones without having to go through probate.

Discretionary and Spendthrift Provisions 

When you create a living trust, you can include discretionary and spendthrift provisions. A discretionary provision states that a beneficiary can only use it for certain reasons, such as paying bills or tuition. A spendthrift provision distributes funds in increments, according to your directions. Both of these provisions can ensure a beneficiary does not spend the funds irresponsibly, or all at once.

Tax Benefits 

During your lifetime, you are still responsible for paying taxes on the property within the trust. However, beneficiaries of living trusts do not typically pay taxes on the distributions of principal. Additionally, married couples can also minimize potential federal estate taxes through a revocable living trust in some cases.

Avoid Probate 

After a person passes away, their property must go through probate unless they have made other arrangements, such as a living will. The property held within a living will is not subject to the probate process and so, it can transfer to your loved ones sooner than if it had to go through the process.

Avoid Will Contests 

Wills are subject to probate and during the process interested parties can contest, or challenge, the will. Property held in a living trust is separate and this, combined with the fact that trust assets do not go through probate, can avoid challenges and ensure your beneficiaries receive the property you intended for them.

Confidentiality 

Anything that happens in probate court becomes part of the public record, including the contents of your will. This is problematic for some people who prefer to keep their property and other details associated with it confidential. A living trust does not become part of public record and so, sensitive information remains confidential.

Our Wills and Trusts Lawyer in Daytona Beach Can Advise On Your Case 

At Bundza & Rodriguez, our Daytona Beach wills and trusts lawyer can advise on the type of trusts that may be right for you and execute them so you and your family are fully protected. Call us today at 386-252-5170 or contact us online to schedule an appointment and to learn more about your legal options.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html