You probably already know how important a trust can be for your estate planning. When you want flexibility and control, turn to trusts.
But determining which type of trust you intend to use is difficult, especially if you don’t yet have a trusted estate planning attorney.
One of the most common types is known as a living trust (also referred to as a revocable trust). This is different from your living will (which is an advanced directive regarding end-of-life decisions), although these documents are frequently confused because they sound similar.
Only one out every five Americans has a living trust, but many people don’t have one because they don’t know the benefits of using it or have never had an estate planning conversation.
A living trust is a legal instrument through which your assets are placed inside for your benefit over the course of your life and then passed on to your chosen beneficiaries at the time you pass away.
Your chosen representative, also known as a successor trustee, is the individual who is responsible for passing on these assets after you pass away.
There are many different benefits with such a trust, but the top four reasons to use a living trust include:
- A living trust can avoid the expensive and complicated probate process.
- A living trust can save you money when it’s structured properly depending on your financial situation.
- A living trust provides additional layers of privacy that can help to protect personal details about your estate.
- A living trust can provide protection for your beneficiaries, and also provides a way for you to decide when a beneficiary should have control of trust assets.
Schedule a consultation with an estate planning attorney in Massachusetts today to learn more about your living trust options.
