Top 6 Reasons To Use A Living Trust

People approach estate planning with different estate issues, different goals, and different family situations. Some individuals have very simple estates that do not require complex estate planning. Others, though, have large estates or complicated assets that require intricate and advanced planning. Trusts are one type of very common estate planning. If you are not sure how a trust could help you meet your estate planning goals, you may not be sure if you need a living trust. Below, our Daytona Beach trusts lawyer explains the biggest benefits.

Living Trusts Provide Asset Protection 

Living trusts do not protect your property from creditors and judgments during your lifetime. If you have a lawsuit filed against you, creditors can go after property in the trust. However, after you pass away, a living trust can protect your property for your beneficiaries. After you pass away, a living trust becomes irrevocable, which means the property in it will be distributed to your beneficiaries.

Discretionary and Spendthrift Provisions 

A living trust can protect your property from beneficiaries who may lack financial responsibility. Spendthrift provisions can prevent a beneficiary from making large purchases that would quickly reduce or eliminate their entire inheritance. Spendthrift provisions allow you to use your discretion regarding when portions of the inheritance are distributed. You can also include other provisions, such as paying a certain bill for your beneficiary instead of making a direct distribution.

Planning for Incapacitation 

When grantors establish and fund a trust, they generally act as the trustee during their lifetime. Grantors also usually name a successor trustee who can manage the trust if the grantor ever becomes incapacitated. Property within a trust can continue to be managed at this point.

Avoid Probate 

Property within a trust can be distributed to beneficiaries without the need for probate. Living trusts are considered separate legal entities from grantors. Due to the fact that the property in a living trust is not technically owned by the estate, there is no need for it to pass through probate.

Avoid Contests Over a Will 

There are many legal grounds for contesting a will. If a family member or other individual chooses to contest a will on any of these grounds, it can significantly delay probate proceedings, meaning it will take longer for beneficiaries to receive the property left to them. In the worst of situations, a person may be successful with their will contest and the grantor’s wishes may not be respected.

Privacy 

When a will is validated in probate court, it becomes public record, meaning anyone can look at its provisions. This is not true with the provisions within a will. If you have significant assets or want to keep details about your property confidential, a living trust may be a better option than a will.

Our Trusts Lawyer in Daytona Beach Can Draft Your Estate Plan 

If you think a living trust, or any other aspect of an estate plan right for you, our Daytona Beach trusts lawyer can help. At Bundza & Rodriguez, our experienced attorney can ensure your trust is drafted properly so it will not be contested in court and your wishes will be respected. Call us now at 386-252-5170 or contact us online to schedule a consultation and to get the legal help you need.

Source:

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