When it comes to planning for the future and ensuring that your assets are distributed according to your wishes, there are two primary tools to consider: wills and living trusts. While both serve the purpose of estate planning, living trusts often provide several advantages over traditional wills.

Understanding Wills and Living Trusts

A will is a legal document that outlines how your assets will be distributed after your death. It goes into effect only after you pass away and requires probate, a legal process that validates the will and oversees the distribution of assets.

In contrast, a living trust is created during your lifetime and holds your assets for your benefit. You can manage the trust while you're alive, and after your death, the assets are transferred to your beneficiaries without the need for probate.

Key Advantages of Living Trusts

Avoidance of Probate

One of the most significant advantages of a living trust is its ability to bypass the probate process, thereby saving time and court fees, and keeping your estate matters private.

Flexibility and Control

Living trusts allow for more control over the distribution of your assets, including setting conditions or timing distributions to beneficiaries; this level of control is not possible with a will.

Incapacity Planning

Unlike a will, a living trust includes provisions for managing your assets should you become incapacitated, ensuring your financial affairs continue to be handled according to your wishes.

Why Choose Living Trusts?

While both wills and living trusts have their place, the flexibility, privacy, and comprehensive control offered by living trusts often make them the preferred option for thorough estate planning. Consulting with a legal professional can further help in determining which option is best suited for your needs.

This blog post is not intended as legal advice.