A revocable living trust may allow you to transfer ownership rights of your assets to the trust itself, all while maintaining control over them. This control remains until you become incapacitated or sadly pass on, in which your assigned trustee may take over without the need for court intervention. All the while, your beneficiaries may receive the assets that you intended for them to inherit. These may all seem like great perks, which is why you may be confused as to whether many individuals sooner establish a will than a trust. Read on to discover how the meaning behind a living trust might be misconstrued and how a seasoned Putnam County trusts attorney at the Law Office of Andres D. Gil, PLLC can help you determine whether establishing this estate planning document is in your best interest.
How can the meaning behind a living trust be misconstrued?
One of the most common misinterpretations of a living trust is that it is meant for wealthy individuals. That is, many assume that wealthy individuals require a trust for special tax planning purposes. What’s more, many assume that they do not have enough assets to fund a trust in the first place.
Rather, the reality is that there are many fringe benefits to a trust outside of tax breaks; to reiterate, one benefit is that it curbs court intervention. In addition, there is no clear-cut minimum amount of money you require to set up a trust. While many estate planning attorneys and financial advisors recommend that individuals with a net worth of $100,000 or more set up a trust, you can still reap its fringe benefits with having much less.
Lastly, it is worth mentioning that establishing a trust may not be as expensive as it initially appears. Yes, there may be significant up-front costs. But the costs of probate, conservatorship, and guardianship that come with simply establishing a will may be ultimately more pricey.
How can I decide whether to establish a living trust or a last will?
The bottom line is that deciding between a living trust and a last will truly depend on your unique financial portfolio and overall life circumstances. Nonetheless, it may be beneficial if you weigh the following pros of each:
- The pros of a living trust:
- You may protect your assets from bankruptcies and lawsuits.
- You may avoid the costs of probate and decrease estate taxes.
- You may give your beneficiaries immediate access to their inheritances.
- The pros of a last will:
- You may establish this document in as little as a few weeks.
- You may simplify your instructions on asset distribution.
- You may appoint guardians over your minor children and pets.
When it comes to your living trust, there is no other than a competent Putnam County estate planning attorney to have in your corner. So please get in touch with us at the Law Office of Andres D. Gil, PLLC today.