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. It is essential to consider a living trust. This document clearly indicates and outlines how you want your estate handled in the event of your death. The legal document is similar to a will but has more advantages. Notably, a will is only effective after a court supervised process known as probate that enhances of the distribution of your assets. It may thus cost a lot and take up a lot of time. On the other hand, the living trust becomes effective after a successor trustee, appointed by you, distributes the assets as outlined with no involvement of the court. It thus saves both costs and time.Besides, for the will, court fees, attorney’s bill as well as executor fee could go up to 5% of the assets.
The living trust takes care of both your privacy as well as the privacy of the family. Clearly, when the will is presented in the court for probate, it automatically gets into the public records.In this case, for a living trust, therefore, no search can reveal how your estate is distributed eventually. 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 a clear and elaborate plan outlined, you are sure that your loved ones are sorted in future. Besides, the beneficiaries can appreciate that you have settled your estate and thus enjoy peace of mind.
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 several living trust checklist requirements you cannot miss. First, it is vital that you create an inventory that includes every asset as well as the liabilities. At the same time, make an order in the funeral home five or more copies of death certificates. In addition, be keen to include in the living trust checklist any expenses. Ensure to send a statutory notice to each beneficiary.
Additionally, ensure that in your living trust checklist includes the filing of the estate tax returns. Besides, make preliminary as well as final distribution to all beneficiaries. Finally, let each beneficiary signs the receipts and accounting waivers. Thus your living trust checklist needs all these essential things.