Why you Should Consider a Living Trust?
Discussing how to ensure a well cared for and intact family after you are gone, may not be a fun topic. You should start thinking of a Living Trust The living trust clearly outlines what it is you wish to do with your estate or assets after 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. Probate is both time consuming and expensive. However, for a living trust, you appoint a successor trustee who distributes your assets after your death without involving the court. It is thus cheap and time-saving. A will may also include paying court fees, attorney bill and executor fee and thus could consume approximately 5% of the estate.
Further, the living trust protects your privacy as well as that of your loved ones. 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. By appointing successor trustee, you can keep off the court in your asset affairs even in case of illness or related issues. Also, the living trust will enhance your calmness and peace of mind. With a clear outline of what you want to happen to your estate, you can relax, since your family is sufficiently safe and cared for.The beneficiaries also acquire peace of mind, knowing that your asset matters are settled.
Settling a living trust can be lengthy, but first, ensure you have your preferred successor trustee. So as to make an effective living trust ensure you have a living trust checklist. There are several things in the living trust checklist that you cannot miss out. First, ensure you list each asset as well as liability as you prepare an inventory.Also, ensure to make an order of five or more death certificates. In addition, be keen to include in the living trust checklist any expenses. Further, ensure that each of the beneficiaries has a statutory notice.
Additionally, ensure that in your living trust checklist includes the filing of the estate tax returns. Next, ensure you make both preliminary and final distributions to all who are in your list of beneficiaries. Finally, let each beneficiary signs the receipts and accounting waivers. Therefore, ensure that each requirement in the living trust checklist is met.