Writing a will is the most common way to ensure that your valuable belongings go to the people you choose, but it does have some drawbacks and limitations. For some families, the probate process can be long and complex, and beneficiaries will receive their entire inheritance at once, whether or not they’re ready to use it responsibly. Depending on your situation, a living trust may be a better vehicle for distributing your property after death, giving you more control and simplifying the transfer of assets.

What You Should Know About Living Trusts

What Is a Trust?

A trust is essentially a separate legal entity that takes ownership of your assets, including your house, car, and investment accounts, which are then used for your benefit. Upon your death, the trust may either be dissolved and the assets distributed to your heirs, or it will be passed to another trustee, who will then manage it according to your instructions.

What Are the Benefits of a Living Trust?

Establishing a living trust allows your estate to skip probate, which can take months or even years to complete. This is especially valuable if you own real estate or investments in several states, which can significantly complicate the probate process. A living trust also gives you more control over when and under what conditions your heirs receive their share of your estate. For instance, you may decide that your children should receive the bulk of their inheritance upon graduating college or completing another life milestone.

Are There Drawbacks to Establishing a Trust?

A trust is more complex than writing a simple will, so the costs of establishing the entity will be higher. For families with significant assets or complex investments, this may be worthwhile, but for most others establishing a trust is not a cost-effective approach. After reviewing your financial situation and long-term wishes, an estate planning attorney can help you decide whether a trust is right for you.

With nearly 20 years of experience and a commitment to providing the highest-quality legal counsel in southwest Ohio, Swartz Law Office LLC has the expertise to guide you through every step of the estate planning process. At this boutique law firm, you’ll receive personalized attention from a skilled professional who will help ensure your wishes are respected after you’re gone. Visit their website for more on their legal services, or call (513) 732-0900 to discuss whether establishing a trust is right for you.