If you have been diagnosed with a fatal illness, you need to take care of things now. One of these things is a living trust. Below is information about what a living trust is, as well as the reasons why you need to set one up.
Even if you set up a will, you still need a living trust. A will determines where you want your assets distributed after you die. There is not one thing in your will that will come into effect until after you pass away. With a living trust, you place the assets that you want to be given to your family into a trust while you are still alive. When you pass away, these assets are then given to the beneficiaries that you chose after you pass away. You will choose a person that you trust to distribute your assets. This person is called an executor.
Living Trust Benefits
There are many benefits of a living trust including:
One benefit of a living trust is that it avoids going through probate. Probate is when a court determines who your assets go to after you pass. This means the court may give someone in your family something that you do not agree with. Also, in probate, family members may argue, which will lengthen the probate. All this can lead to a substantial amount of money in attorney and court fees for your family members.
A living trust prevents going through probate. This is because you choose how you want your assets distributed. The executor of the trust will also pay any debts that you may owe after your death from the money that you put into the living trust.
Gives You Privacy
Your living trust will be completely private from everyone in your family, as you do not have to make it public. After you pass, your executor does not have to show the living trust to anyone if they choose not to. Instead, the executor takes over the job of handing out your assets to your family members or whoever you choose.
This can prevent strife, as one family member cannot see what another family member receives. For example, you may choose to give more assets to one child and less to another. A will is public, and any transactions you do with the will are public also.
Because it is important that you set up a living trust correctly, hire a living trust attorney from a firm like Rudolph and Chonoles LLP to assist you.