Revocable living trusts are a powerful estate planning tool that can have many advantages for you and for your loved ones. If you are not sure whether trust creation is the right choice for you or whether you could benefit from the process of creating a trust, you should talk with an experienced trust lawyer at Zimmer Law Firm to find out about the many benefits of creating a trust.
One of the main reasons why people decide that they need to create a legal team is because they want to provide for their heirs or beneficiaries in the best way possible. A living trust has many benefits for those who stand to inherit, and Zimmer Law Firm can provide insight into some of the many reasons why your loved ones may prefer to inherit through a trust. You should give us a call to get personalized advice on the trust creation process and to find out why creating a trust could be the best way to leave your legacy. You can also read on to find out five of the key ways that revocable living trusts can benefit your heirs or beneficiaries.
1. Living Trusts Can Protect Assets for Heirs Or Beneficiaries to Inherit
A living trust can help you to ensure that your wealth is protected so your heirs or beneficiaries can inherit the maximum amount of your wealth possible.
There are some limitations to the protections that a living trust provides for your money and property. For example, a revocable living trust won’t protect assets if you need nursing home care and have to pay for the care out of pocket because you have too much wealth to qualify for Medicaid. A revocable living trust also won’t prevent estate tax from being assessed if you have a large estate and are leaving assets to someone other than a spouse.
However, living trusts do protect wealth because you can name a backup trustee who will be able to immediately take over the management of assets in case of your incapacity. You won’t have to worry about assets being lost due to mismanagement. You also won’t have to worry about losses caused by a delay in your assets being appropriately managed while your loved ones go to court to get a guardian or conservator appointed.
Taking steps to protect your wealth benefits your heirs or beneficiaries because if losses occur, there will be less money or property passed on to your loved ones.
2. Living Trusts Can Facilitate the Timely Transfer of Assets
The probate process takes as long as a year to complete, according to Investopedia. If you make a revocable living trust, assets can pass through the trust administration process instead of the probate process. This saves time so your loved ones can receive an inheritance in a matter of weeks instead of a matter of months. When your loved ones will depend upon an inheritance to help them maintain their quality of life after you pass on, being able to transfer money and property in a timely fashion is essential.
3. Living Trusts Can Help to Save on Costs
Investopedia also estimates the costs of the probate process at three percent to seven percent of the value of the estate. That’s a substantial amount of money in many cases. The trust administration process can cost far less, so heirs or beneficiaries can keep more of the money you hope to provide to them.
4. Living Trusts Help Your Loved Ones to Avoid Going to Court
The probate process takes place in court, which can be stressful. The trust administration process does not require court proceedings to transfer trust assets to heirs or beneficiaries after you pass on. Your loved ones will appreciate not having to handle legal proceedings when coping with grief.
5. Living Trusts Can Protect Privacy
When assets transfer in court, the transfer becomes court record and thus public record. The trust administration process can keep the transfer of wealth private.
Getting Help With Revocable Living Trusts
If you have decided you want to ensure that your heirs or beneficiaries can take advantage of the benefits that revocable living trusts provide, Zimmer Law Firm can help you. Our experienced and compassionate trust lawyers will assist you in determining if a revocable trust is the best type of trust for your situation. We can also help you to create your trust document, to fund your trust, and to select the right beneficiaries and the right trustee.
To find out more about how our firm can help you with trust creation or with all of your estate planning needs so you can best provide for your loved ones, join us for a free seminar. You can also give us a call at 513-721-1513 to get personalized advice.