Monday, November 07, 2011 Advantages of Living Trusts
Although Living Trusts aren’t a necessity for most people in Pennsylvania, they can still make sense for many, depending on your estate planning goals and concerns.
Here are a few reasons that a living trust might make sense:
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Easier transition: Unlike a Will that controls only after you die, a living trust allows you to create an instrument that controls your assets if you became disabled, and after you pass on. In other words, 2-in-1. Yes, you could (and should) have Powers of Attorney in case you become disabled. But for assets in a living trust, the Powers of Attorney won’t be necessary and will therefore be easier on your loved ones.
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Privacy concerns: A Will, once probated, is public knowledge and can be reviewed by anyone. If you’re concerned about a Will challenge or contest, a living trust might make sense to look into. The living trust and assets held in it never get probated.
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Avoid Probate: By avoiding probate, your family can save on probate fees and some of the annoyances that come along with probate. Pennsylvania probate isn’t too difficult, but avoiding it will make things easier.
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Asset Protection for Heirs: A living trust can provide asset protection for your children and grandchildren by protecting your heirs from themselves and others, including creditors, divorcing spouses, etc.
You should determine with an attorney whether a living trust makes sense for you. There are a number of factors that could weigh in favor or against a living trust. The reasons above are just scratching the surface.
A living trust will likely cost more than a Will up front, but could save time and money later on.
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