Why you Should Consider a Living Trust?
Well, although this not the most interesting topic, it is essential to ensure you have a plan about how your family will remain intact and well-taken care off even after you are gone. You should start thinking of a Living Trust This document clearly indicates and outlines how you want your estate handled in the event of your death. The document is almost like a will, but brings about much more advantages. Before a will becomes effective, the court has to be involved in a series of processes (probate) to distribute the assets. It may thus cost a lot and take up a lot of time. For a living trust, however, you only require to appoint a successor trustee who then distributes your estate as outlined in the document without court intervention. It, therefore, less cost and time-consuming compared to the will. A will may also include paying court fees, attorney bill and executor fee and thus could consume approximately 5% of the estate.
Further, the living trust protects your privacy as well as that of your loved ones. Apparently, presenting a will in court makes it a public record. Since the living trust does not become a public record, no search can reveal the distribution of your estate. Also, the living trust is better since you can avoid bringing in the court and only appoint a successor trustee, in the event that you are either ill or incapacitated. Also, the living trust will enhance your calmness and peace of mind. With this legal document with a clear outline of your wishes, you are sure that the family is well cared for. The beneficiaries can also attain peace of mind, aware that you have already taken care of them.
Although settling the living trust may be a cumbersome and long process pick your successor trustee wisely. So as to make an effective living trust ensure you have a living trust checklist. There are essential requirements in the living trust checklist you need to include. First, it is vital that you create an inventory that includes every asset as well as the liabilities.Also, ensure to make an order of five or more death certificates. It is also critical to outline all expenses in the living trust checklist. Ensure to send a statutory notice to each beneficiary.
It is vital to include the filing of the estate filing returns in the living trust checklist. For each of the persons in the beneficiaries list, ensure to make both preliminary and final allocation of your assets. Eventually, ensure that all the beneficiaries sign both the receipt as well as waiver of any further accounting. Thus your living trust checklist needs all these essential things.