This article is intended for educational purposes only and is not legal advice. For guidance on your personal situation, please contact a lawyer.
One of the toughest things you might have to do in the course of your life is plan for when you're not around. To that end, it's important to make sure those who depend on you are taken care of -- and that extends to pets. It's also important to make sure you're able to pass assets along to your heirs in the most seamless manner possible. And to that end, you may want to consider a living trust.
At first, the word "trust" might invoke thoughts of wealthy people with attorneys on retainer. But rest assured that regular people with average amounts of wealth can benefit from putting a trust in place. And you may want to consider a living trust for the benefits involved.
Image source: Getty Images.
An option that could make things less complicated for your heirs
A living trust is a legal arrangement that helps you pass assets along to designated beneficiaries. It's similar to a will in that regard. Only with a living trust, there's one key difference -- you won't have to go through probate.
Probate is the process of proving that a will is valid in court. It's also a process that could take months, and in some cases, years. Plus, it can be expensive.
But that's not even the worst part of probate. One thing a lot of people don't realize is that wills that are subject to probate become a matter of public record. If that sounds horrifying to you, then that alone is a good reason to consider a living trust instead.
Living trusts do not need to go through probate, so their details can remain private. This also means that if you don't want to share details of your family's finances with the world, you won't be forced to.
Even if you put the issue of privacy aside, probate can be a stressful process that makes it take longer for your heirs to inherit the assets you're passing along. So if you want to spare them that added grief, it may be time to sit down with an estate-planning attorney to talk about what a living trust might entail.
Consider your personal situation -- but also get the right advice
If your estate is relatively uncomplicated, you may be inclined to stick to a will for passing on an inheritance. And that's not necessarily a poor decision.
But if your estate is at all complex, a living trust could make things smoother. And one situation where you may particularly want to consider a living trust is if you own real estate in different states that you plan to pass along to your loved ones. In that case, if you stick to a will, you may be subject to probate in each state you own real estate in. That could make for quite the drawn-out, complicated process.
All told, though, an estate-planning attorney is really in the best position to offer guidance on whether a living trust is right for you. So if it's an option you're interested in, set up an appointment to discuss your specific situation.
