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. The document lists your wishes regarding your assets, once you die. Although the document has some similarities to a will, it is slightly different with several benefits. Before a will becomes effective, the court has to be involved in a series of processes (probate) to distribute the assets. The process of effecting a will may thus be lengthy, time as well as funds consuming. 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 is thus cheap and time-saving. Besides, for the will, court fees, attorney’s bill as well as executor fee could go up to 5% of the assets.
Further, the living trust protects your privacy as well as that of your loved ones. Apparently, presenting a will in court makes it a public record. Since the living trust does not become a public record, no search can reveal the distribution of your estate. 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. The document also avails peace of mind to you. With this legal document with a clear outline of your wishes, you are sure that the family is well cared for.Besides, the beneficiaries can appreciate that you have settled your estate and thus enjoy peace of mind.
Settling a living trust can be lengthy, but first, ensure you have your preferred successor trustee. To ensure that you don’t miss a thing, make a living trust checklist. There are several things in the living trust checklist that you cannot miss out. First, ensure you list each asset as well as liability as you prepare an inventory. At the same time, make an order in the funeral home five or more copies of death certificates. In the living trust checklist, also ensure that you record all the 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. Eventually, ensure that all the beneficiaries sign both the receipt as well as waiver of any further accounting. Therefore, before when setting the living trust, ensure that the living trust checklist has all these vital requirements.
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