After working hard for all their lives, most people want to pass on the wealth and assets they amassed to their families and loved ones. One such way they may do so involves setting up a living trust.
Considering some of the benefits of setting up living trusts may help people determine if that option may suit their needs and goals.
Avoid probate
According to CNN Money, people may avoid their estates going through probate by placing assets into a trust. Probate expenses often cost between 5% and 7% of people’s estates, taking away from the wealthy they hoped to pass on to their heirs. Through a trust, people may distribute assets to family members and loved ones without taking on the time delays and financial costs of probate.
Maintain privacy
According to Forbes.com, setting up living trusts allows people to protect their and their families’ privacy. When probated, wills and certain other estate information become a matter of public record. For example, this may include inventory listings of people’s assets and their valuations. Private documents, living trusts
Keep assets in the family
Setting up trusts also helps people keep their assets in their families. For instance, a trust offers protection in the event of a divorce. Rather than falling subject to the property division process, trust holdings remain the personal assets of the heirs they are bestowed upon.
For the heads of families, worries may abound about providing for their loved ones after their deaths. After their passing, however, estate planning options such as living trusts and wills may help them care for their family members.
