Living trusts are powerful estate planning vehicles, giving you more control over your assets and simplifying the process of distributing your belongings after you’re gone. Unlike wills, trusts are separate legal entities which offer a wide range of benefits, especially for those with complex estates or property in several different states. Below are just some of the advantages of incorporating a living trust into your estate plan.

5 Benefits of Living Trusts

1. Avoiding Probate

Probate can be a lengthy, expensive process, especially if you have real estate or other property in different states. With a will, your executor would have to probate your assets in each jurisdiction, which can be costly and cumbersome. Because trusts take ownership of your assets during your life, your estate won’t have to go through probate after you’re gone.

2. More Control Over Your Assets

Once a probate case is closed, the assets are immediately distributed to your beneficiaries. A trust allows you to place conditions on inheritance, protecting the wealth you’ve built even after you’re gone. For instance, you may stipulate that a grandchild can only receive their share when they reach a certain age.

3. Privacy

Once they’re entered into probate, wills become public documents accessible by anyone. Living trusts are completely private, which is an attractive feature for families who don’t wish to publicize their personal matters.

4. Tax Advantages

While living trusts don’t fully shield your estate from taxes, some types can reduce your exposure and leave more for your loved ones. Family trusts are a popular choice, allowing you and your spouse to effectively double the exemption on money left to your children.

5. Your Estate Can Continue to Grow

If the spouse or trustee managing your assets invests wisely, your estate can actually continue growing after you’re gone. In fact, any funds put into a bypass trust are tax-exempt, even if the amount doubles or triples over time. This makes a trust a valuable estate planning tool for those who wish to establish a legacy for their family.

Estate planning can be confusing and overwhelming, which is why Thomasville, NC, residents turn to Randy L. Cranford Attorney at Law for help protecting their assets and loved ones. They pride themselves on taking a personal interest in the well-being of each client, and giving everyone the personal attention these serious matters deserve. To discuss your estate plan with an experienced attorney, visit their website or call their offices at (336) 476-3115.