Now the first question comes is that what is a living trust? And the answer includes that a living trust is a legal document (in a written form) which helps you by placing your assets in a trust for your benefit only, throughout your lifetime and all these assetswill be transferred to your representative (chosen by you) after your death. Representative can be from your family, friends or any charity and known as successive trustee. According to a survey, about 20 percent of people are having living trust instead of a will due to several benefits of living trust.
Benefits of a living trust
- In living trust, there is no need of probate. All your assets will be distributed to your trustee, which is a quick process. While on the other hand, a will has to go through probate and after then the assets are transferred to your representatives.
- Living trust helps you to save your time, money and stress free as well because a living trust do not go through probate so all your assets would be easily transferred to the people who are going to be benefited, in a shorter span of time. While on the other hand, in case of will, time period can even extend up to more than 2 years.
- Everybody knows that will are made in public or in the front of family and friends while on the other hand, a living trust bypass probate and remains private.
- In case of will, beneficiaryhave to pay huge amount of money to the court while heirs of living trust have to pay only small amount of fees to the court.
- People who become incapacitated during their lifetime so to overcome your incapacity, there is a much better way, which is possible, is a living trust.
- A living trust does not cause any problems even if the properties of creator of living trust are in different areas or states.
So, if you are at certain at stage of life and want to create a will or living trust and are confused between the two, then living trust is a better option.