Have you ever heard of a living trust? Has someone ever explained to you how great a living trust can be for the beneficiaries of those who have trusts? Maybe you’ve even wondered why doesn’t everyone have a trust if they are so great. Trusts do indeed have several advantages, but they are not perfect and they may not be the best estate planning method for everyone in Lee County.
So what are the advantages and disadvantages of a living trust? Perhaps the greatest advantage of a living trust, according to AtYourLibrary.org, is that it allows you to avoid probate. That means your family doesn’t have to go to court in order to prove your intentions or wishes. It also means they don’t have to hire or appoint someone to represent or manage your estate.
Another great benefit of a living trust is that it is kept private. That means your trust and, how you disperse your assets, does not have to be made public because you do not have to file it with any government agency. The only people who will know how much money the trust creates are the beneficiaries, while the trustee is the only who knows how much its assets are actually worth.
There are some downsides to a living trust, as well, because it has some limitations. For example a living trust can’t set up a care plan for children, nor can it grant any rights to a domestic partner. Likewise, you cannot use a living trust to plan for your funeral. Although it’s private, your living trust might still be subject to any debts that you owe to creditors. Living trusts can also be expensive to set up and they are not monitored for any possible abuse of funds or fraud from the trustee.
Although this information could be helpful in your situation it is not to be taken as legal advice.