Why a Living Trust?
Why hire an expensive attorney when you can get the same documents prepared by a licensed attorney for a fraction of the price? That is why we set up LivingTrustandWill.com. Our mission is simple: Provide an estate plan for a price that everyone can afford! With many American families struggling, we came up a with a simple, affordable solution to protect families.
The ability for your family to avoid probate is a very popular reason to choose a living trust. Probate is simply the legal process of settling the estate of a deceased person. There are several reasons why probate is worth avoiding.
Reasons to Avoid Probate
- Waiting Period
In some cases the state may require a Federal Estate Return. This process can range from 3 to 18 months! The factors discussed come into play during a bereavement period. A time of waiting for probate is not for the betterment of survivors’ already emotional states.
- Probate Cost
The cost of the probate process is a waste of the money entitled to the beneficiaries. Each state has differing fees and standards, but typically probate can eat up as much as 5% to 7% of the value of the assets left behind. For example, some probate fees might be as follows:
|Estate Value||Estimated Probate Fees|
|$100,000||$5,000 - $7,000|
|$300,000||$15,000 - $21,000|
|$500,000||$25,000 - $35,000|
|$700,000||$35,000 - $49,000|
|$900,000||$45,000 - $63,000|
Probate’s cost might be justified if the process really did something for families. But in most instances, there is no conflict, so there’s no need to be in court. Source
The terms of a will (because it goes through probate) are public, while a trust is not. For some, this distinction alone makes a trust the ideal choice.
- Spendthrift Protection
Trusts may be used to protect beneficiaries (for example, one’s children) against their own inability to handle money. A spendthrift trust is a trust that is created for the benefit of a person (often because he or she is unable to control spending) that gives an independent trustee full authority to make decisions as to how the trust funds may be spent for the benefit of the beneficiary. Source
- Transferring your home into a Living Trust
A Living Trust allows you to transfer title of your home into the Living Trust. This property may be distributed with your personal property (i.e. watches, automobiles, family heirlooms, etc.). This allows for quick distribution of your assets without the hassle of court supervision.
- Benefits of a Trust Over a Will
A will can not provide privacy for your estate plan nor can it keep your assets from probate. A Last Will and Testament that’s admitted to probate becomes a part of the public court records and therefore offers no privacy at all; it only goes into effect after you die, so mental disability planning is out of the question; and any asset titled in your individual name at the time of your death, or any life insurance policy or retirement account that doesn’t have a beneficiary who survives you, will require probate. Source