One of the last issues to tackle when you are thinking of starting a family is that of planning your estate. However, financial planners and other professionals agree that planning your estate is critical at any age. In addition to determining who will care for your children after you pass away, it is important to list how you want your property distributed to your beneficiaries.
One option is leaving your assets and property in a revocable living trust. A trust is revocable, meaning that the person who created the trust is able to change the terms at any time. There are several advantages to putting your property and assets in a trust.
Transferring property to beneficiaries
When you place your property and assets in a trust, those items will be directly transferred to beneficiaries upon your death. If you leave the property and assets in a living will, the items may go through the probate process before transferred to the rightful heirs named in the will. A living trust
- Minimizes disputes over property
- Does not require an executor to oversee the estate
- Bypasses the probate process
- Transfers property and assets to the beneficiaries quickly
You can minimize disputes over property and assets when you avoid the probate process, as there is no room for negotiations for property left in a trust.
In addition to avoiding the hefty price of a courtroom battle during the probate process, a trust helps married couples avoid estate taxes. It also ensures that assets left in the trust stay within the family and are not given to an ex or in-law. Finally, all of your financial affairs remain private in a revocable trust and are not a matter of public record. A will, on the other hand, is open to the public and others are able to see information regarding your estate, such as how much your estate is worth.