A living trust is an important part of an estate plan where assets are moved, and a trustee is assigned to look after the assets and manage the beneficiaries. During their lifetime, the Grantor of the trust can name their own trustee and beneficiaries. Living trusts are beneficial and one of the most useful estate planning strategies when used wisely.
Regardless of whether you are growing old or still have some young years left you, it is better to start estate planning as early as you can. However, there are certain preconceived notions about living trusts that prevent people from seeking all of its benefits. Here are some myths and facts to help you uncover the truth. To know more, visit this page.
Debunking myths regarding living trusts
- Living trust only benefits beneficiaries, not the trust creators.
Living trust also benefits the trust creators, also known as the grantors, apart from the beneficiaries. It gives you control over how your assets will be distributed and gives you the power to handle your affairs. It helps you to maintain your privacy. It is a private legal document, unlike a will. It keeps your financial details private and information about the beneficiaries and assets.
- Creating a living trust is expensive and complicated.
Setting up a living trust involves more paperwork than wills. However, this is for a reason. It provides you and your loved ones with benefits and avoids court control over assets. Living trusts are, however, more expensive than wills; they can save you time and money by avoiding probate expenses. They save you a lot of time by smoothly distributing assets without any need for probate affairs in court.
- A living trust can not be updated.
Many people believe that once a living trust is set up, it can not be changed or updated. However, this is a common myth, as the living trust is capable of being revoked and can be continually updated. Life is full of changing events. An estate planning attorney will help you to modify or revoke your living trust whenever life takes unexpected turns to ensure your assets go into the right hands and your loved ones are protected.
- Living trusts avoid probate automatically.
Setting up a living trust does not automatically avoid probate. However, there are certain reasons to avoid probate, such as privacy, but it does not necessarily mean that setting up a trust will simply do the job. There must exist some other factors, too. An experienced attorney will help you ensure your assets are funded in the living trust correctly and avoid any chances of probate.