Trust funds fill a vital role in modern estate planning. They allow you to address specific problems, such as providing for a loved one with special needs. They can also help you preserve your wealth for future generations.
Revocable living trusts are among the most popular estate planning tools for their relative ease of creation, but they offer additional advantages. Do not overlook this versatile trust when choosing the documents your plan needs. Here are some of the advantages:
It escapes probate
If you dread the prospect of your family enduring probate, a revocable living trust can help. The trust does not die when its creator does, making the assets it holds exempt from the probate process. Courts rarely need to involve themselves in living trust matters.
It addresses incapacity
Many people fear the prospect of physical or mental incapacity as they age. A living trust may help you reduce the risk of falling under guardianship or conservatorship. Do not forget to designate an alternate trustee to continue managing the trust per your wishes should incapacitation arise.
It protects your privacy
As mentioned before, assets held in a living trust do not undergo probate, meaning they are not a matter of public record, unlike the contents of your will. If you don’t want your nephew to see what you left for your niece, consider addressing the issue in your trust instead of your will.
As far as drawbacks are concerned, there are not many, but here are three to consider:
- They are costly to fund
- They offer little protection against creditors
- The assets they contain remain taxable property
Remember that each state has separate will and trust laws. Familiarize yourself with estate planning in Georgia to ensure error-free estate documents.