When it comes to estate planning, most people are aware that they should draft a last will and testament. Depending on your circumstances, however, you—and your loved ones—may also need the protection that living trusts provide. These financial arrangements offer a number of benefits that wills don’t. If you’re wondering whether to include trusts in your estate plan, the guide below should help you decide. 

A Guide to Living Trusts

What do living trusts do?

A living trust is a kind of fiduciary arrangement in which assets are transferred and then held until the beneficiaries are entitled to them. When you fund the trust, you’re essentially transferring ownership of the property in question to that of the legal entity you’re creating. If you also happen to be the trustee, you may manage the property until it’s distributed or you pass and the successor trustee assumes control. 

What are the benefits of living trusts?

Because trusts are funded upon their creation, the property they contain does not have to pass through probate upon the grantor’s death. Since probate documents are essentially public records, this protects the privacy of your beneficiaries. What’s more, trusts allow you to implement strict requirements for both the distribution and subsequent use of their assets. Wills do not allow for this kind of control. 

Do I still need to create trusts if I draft a will?

A last will is the basis of every comprehensive estate plan. If you want your loved ones to gain access to their inheritances as soon as you pass, though, it’s advisable to create trusts, too. Trusts are also helpful when it comes to leaving funds for minors, pets, and incapacitated relatives. The trustee will ensure the assets are used to care for the beneficiaries according to your wishes.  

Can I modify a living trust?

It’s wise to take a proactive approach to estate planning. Since your circumstances will inevitably change over time, though, you may eventually need to modify the trusts you create. Thankfully, as long as the arrangements were not irrevocable, you may change or nullify them at any time. There are only a few scenarios in which it makes sense to create an irrevocable trust. Your attorney can evaluate your situation and let you know if any of them apply to you. 

For help with all your estate planning arrangements, including living trusts, turn to Swartz Law Office in Batavia, OH. Led by Donald K. Swartz, this firm has helped thousands of clients navigate complicated legal proceedings. Founded in 2011, they offer a broad range of services, and they’re well-versed in bankruptcy law, real estate law, probate, and domestic relations. To request a consultation to discuss your estate plans, reach out on their website or call (513) 732-0900.