When considering estate planning, the range of options available can quickly make the process seem overwhelming. How are you supposed to decide what you truly need and what is best for you, your family, and your possessions?
You might get recommendations from family and friends about why you ought to do this or that, but how can you know who to trust while trying to figure out what’s right for you? Someone may have suggested that you put your possessions into a trust before you pass away. What does this mean, and why do people do this?
It is a good option for estate planning
All of your possessions can be placed in a trust that you can modify or revoke at any stage throughout your lifetime. Even though your possessions are held in trust, you continue to enjoy all of your rights to them for the rest of your life. The trust’s named items will then automatically pass to the people named in the trust documents upon your death.
It can help you avoid probate
One of the most attractive benefits of a revocable living trust is that it can help you and your loved ones avoid the probate process altogether.
Your assets will pass directly to your intended beneficiaries without the need for probate. It’s crucial to keep in mind that a living trust does not replace the function of a will, which is still required for anything else you don’t specifically name in the trust.
There’s someone to manage your assets if you can’t
If you become unable to administer the trust’s assets personally owing to illness or another physical or mental incapacity, your trustee may act on your behalf. This is especially helpful if you own your own company. Without waiting for probate, your trustee can take over operations.
Estate planning is a necessary part of life, no matter what assets you have. It’s always a good idea to take some time to plan what you want to happen to your property during your lifetime.