Imagine this sad, but all too possible, situation.
You are married with four, five, six kids. You have a will — that you and your spouse created a decade and three kids ago!
Your younger children’s names are nowhere on your will. They would get left out of anything should something happen to you or your spouse. Your oldest child may get your entire estate, whether they are capable or not.
This is the situation that made my husband and I stop in our tracks. While driving home one day, I realized that if I were to get into an accident, my finances were not prepared. I had an outdated will and no living trust.
Don’t let this scenario happen to you and your loved ones! Establishing a trust is important for all families.
Keep reading to see why this is true!
Living Trusts Go into Effect Now, Not Later
Will vs. living trust is a common debate with a semi-complicated answer. But, we see at least one major reason to consider a living trust instead.
A will goes into effect in the event of the maker’s passing. But living trusts go into effect now, before anyone’s passing. This is especially important in the event that you become physically or mentally incapable before writing a will.
Making a Trust Guarantees Privacy
Wills are worked out in probate court. After the will-maker’s passing, they become public record. They are contestable, public, and can be argued into changing!
A living trust avoids probate court, making them private and uncontestable. What the writer says goes! It cannot be fought by disgruntled friends or greedy family members.
Your Property Avoids Probate
If you put your property into a living trust, you can avoid probate (as we mentioned). The trustee named in the trust agreement can step into the shoes of the trust maker without hassle.
Probate is not required for transferring ownership; the beneficiary does not own the property. It is a separate legal entity.
It Protects Your Property from Incapables
Let’s say the total of your assets and estate is a large dollar amount. If you have an eighteen-year-old, you may not want the total going to them — yet.
A living trust allows your assets to be divvied out smartly over time. Your trustee allocates a discussed amount to the beneficiary in increments. This can help prevent irresponsible spending in youth, addicts, or unsmart spenders.
It Protects You If You Are Incapable
This ties into our first benefit of living trusts; they go into effect immediately.
This even helps in that event that you become incapable of dealing with your finances or estate. If you become mentally or physically incapacitated, a living trust covers your assets. It puts them in the hands of a pre-approved (by you) trustee.
Trust Us: You Need a Living Trust
Now that you see why making a trust is so important, it is time to get writing!
Use careful consideration to decide what you want your living trust to cover — and for whom. Remember, it is never too early to start drafting it. No one is guaranteed tomorrow.
A family attorney can help you make the appropriate decisions. Here is how to find the best one in Myrtle Beach!