When it comes to estate planning, most people are familiar with the concept of a will. While the details of trusts might be lesser-known, these legal documents could suit your legacy even better. The following guide will help you make an informed decision about forming a trust and managing the future distribution of your assets.

3 Advantages of Trusts in Estate Planning

1. Avoid Probate

If you draw up a will instead of a trust, your estate will enter the probate process after your death. This court-supervised period can last months or even years as the court spends time authenticating the will before distributing the assets it entails.

When you place your assets in a trust while you’re still alive,  an individual of your choosing—known as the successor trustee—will manage the distribution process after you pass, not the courts, reducing the wait time to a few weeks.

2. Save Money

Not only is probate time-consuming, but it can also be expensive. The longer it takes to authenticate the will, the more of your estate will be put toward probate expenses, reducing the amount your loved ones inherit. The process will drag out even longer if someone contests the will.

Luckily, living trusts speed up the probate process and are a lot harder to contest, so your estate can retain its value. There are also certain types called bypass trusts, which you can put up to $5.45 million worth of assets into and possibly avoid estate taxes.

3. Enjoy Peace of Mind

Living trusts may also take effect when you become incapacitated, not just when you pass. Without a trust, control of your estate would transfer to a court-appointed conservatorship. With a trust, you can choose your own successor trustee, such as a spouse or child, to manage your affairs. If you’re no longer incapacitated, you can revoke the trust completely or alter its terms if you want to. 

These legal documents also allow peace of mind by preventing probate, as this process is public record. The establishment of a living trust will make the distribution of your assets private, which you and your beneficiaries might appreciate.

If you’re hoping to learn more about trusts or set up one of your own, get in touch with McClure, Ramsay, Dickerson & Escoe, LLP of Toccoa, GA. This respected team of attorneys has been serving clients for over 100 years. In addition to estate planning matters, they also handle personal injury cases and real estate law. To learn more about their offerings, visit the website or call (706) 886-3178 to arrange for a consultation.