A living trust is one of the most effective tools you can use in the estate planning process. This is a legal arrangement in which certain assets are transferred over to a trustee who will hold and manage them on behalf of your beneficiaries. It offers flexibility and control over your property while you’re still alive and details how the assets should be used or distributed in the event of your incapacitation or death. Here are a few of the top reasons to set up a living trust to benefit your loved ones.

Why You Should Consider a Living Trust

1. Avoid Probate 

The biggest advantage of having a living trust is the ability to avoid probate, which a will must go through to determine its validity after someone has passed away. During this process the court will also oversee the decedent’s estate administration. Living trusts are not required to go through probate because they are designed to distribute your estate’s assets directly to your beneficiaries. As such, distributing property through a living trust is much quicker and cost-effective. It can end up saving your beneficiaries a great deal of time and money. 

2. Tax Planning 

When used strategically, a living trust can serve as a helpful tax planning vehicle. Although it won’t reduce or eliminate your estate taxes by itself, you may implement tax planning provisions that transfer wealth to other avenues and provide the opportunity to take advantage of all possible tax exemptions. This can keep a large portion of your estate from going to taxes and leave more inheritance for your beneficiaries.                                                                                        

3. Maintain Privacy 

Another benefit of establishing a living trust when estate planning is that it will maintain your privacy and keep your final wishes confidential. Your assets will be distributed without others having knowledge of what you owned and whom you left it to. This can help prevent tension and conflict among your family members. In contrast, wills become a matter of public record when going through probate, which means anyone can easily gain access to its contents just by visiting the courthouse.

Whether you decide to use a living trust, a will, or both in your estate plan, an attorney from Monteleon Law Group in White Plains, NY, can help determine which tools will most suitably meet your estate planning needs. They will also guide you through the process of setting up a trust to ensure it’s funded properly and clearly defines your final wishes. Call (914) 840-2529 to schedule an estate planning consultation or visit their website to learn more about their services.