Benefits of a Living Trust
A discussion on how to leave your family intact and properly taken care of may not sound so good. It is essential to consider a living trust. The document lists your wishes regarding your assets, once you die. The document is almost like a will, but brings about much more advantages. Notably, a will is only effective after a court supervised process known as probate that enhances of the distribution of your assets. The process of effecting a will may thus be lengthy, time as well as funds consuming. For a living trust, however, you only require to appoint a successor trustee who then distributes your estate as outlined in the document without court intervention. It thus saves both costs and time.Besides, for the will, court fees, attorney’s bill as well as executor fee could go up to 5% of the assets.
In addition, a living trust ensures the protection of your privacy and that of your family. Clearly, when the will is presented in the court for probate, it automatically gets into the public records. At no point does the living trust become a public record since it requires no probate; hence no search can revile the distribution of the assets. Also, the living trust is better since you can avoid bringing in the court and only appoint a successor trustee, in the event that you are either ill or incapacitated. The document also avails peace of mind to you. With this legal document with a clear outline of your wishes, you are sure that the family is well cared for.Besides, the beneficiaries can appreciate that you have settled your estate and thus enjoy peace of mind.
Although settling the living trust may be a cumbersome and long process pick your successor trustee wisely. To ensure that you don’t miss a thing, make a living trust checklist. There are several things in the living trust checklist that you cannot miss out. First, it is vital that you create an inventory that includes every asset as well as the liabilities.Also, ensure to make an order of five or more death certificates. It is also critical to outline all expenses in the living trust checklist. Ensure to send a statutory notice to each beneficiary.
In the living trust checklist also, include filing an estate tax return. Besides, make preliminary as well as final distribution to all beneficiaries. Eventually, ensure that all the beneficiaries sign both the receipt as well as waiver of any further accounting. Thus your living trust checklist needs all these essential things.