What Are Some Advantages Of Using Trusts In Estate Planning?
What are some advantages of using trusts in estate planning?
The biggest advantage of using trusts in estate planning is that trusts can help you avoid probate. Probate is the legal process through which a deceased person's assets are transferred to his or her heirs. It can be time-consuming and expensive, which is why many people use trusts as part of their estate plans. (Probate is discussed in more detail below.) There are many different kinds of trusts, depending on your state's laws and the kind of help you need. The four most common types of trust are living trusts, irrevocable trusts, testamentary trusts, and special needs trusts.
Let's take a look at each type of trust in more detail:
Living Trusts: Living trusts are also called "inter vivos" trusts because they're made during your lifetime—that is, while you're still alive. If you create one, you transfer ownership of all or part of your assets into the trust so that they'll be managed by the trustee you appoint. This gives you the ability to specify how your assets will be distributed after your death and eliminates the need for probate when you die. There are two kinds of living trust: revocable and irrevocable. A revocable living trust is a trust document created by an individual that can be changed over time. Irrevocable living trust. A trust that cannot be revoked and that takes effect during the life of the grantor.
If you have any questions or need an Estate Planning Attorney, please call this law firm for a free consultation.
Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676-5506
