Many people today have accumulated substantial assets but have yet to make specific, legally binding arrangements regarding how they will be passed on to others. In some cases, having a traditional will written up will make for a fairly straightforward and approachable solution. On the other hand, working with an estate planning attorney to set up a revocable living trust can be an even more appropriate option, in many cases.
Worthwhile Reasons to Consider a Living Trust Over a Will
No one wants to leave loved ones dealing with overly complicated arrangements and demanding requirements after a family member has passed away. A simple will can all but ensure that a person’s assets will be distributed after their passing as wanted and without the kinds of lengthy, disruptive court proceedings that might otherwise be required.
In many cases, however, setting up a revocable living trust will enable a number of important benefits. Two of the most significant of these, in many cases, are:
- No probate. When a person with significant assets passes away while a valid will is in effect, it still normally takes some time for the indicated assets to be distributed. The probate processes that all states mandate and oversee are meant to ensure that creditors will not be left empty-handed and that others with interests in the estate will also have time to make their own cases. As a result, it can be months or even longer before the beneficiaries named in a will actually receive their shares of the estate. When a living trust has been set up beforehand, instead, the transfer can occur without the delays imposed by the probate process.
- Tax deductible. Some people of means nonetheless shy away from setting up any sort of trust because of a fear that it will be too expensive to establish or maintain. In many cases, however, the costs associated with creating a revocable living trust can be deducted from personal income taxes. That alone can easily make it much more appealing to take advantage of this option.
A Flexible Option That Often Makes Excellent Sense
Setting up a revocable living trust with the help of an attorney can easily be a better option than having a traditional will drafted, instead. In fact, many who investigate this possibility quickly become convinced that it is the superior choice in every relevant way.