Is A Living Trust For You?Are you trying to decide if a living trust is the right option for you? There are several things you can look at to help you decide if this is actually the best option you have for managing your estate. The exact criteria can obviously vary based upon individual circumstances and are not a diehard set of guidelines but rather recommendations. If you have several beneficiaries that you are wanting to protect you can consider a living trust. This would allow you to specify the beneficiaries as well as the percentage of the trust they are entitled to, and any criteria they would need to meet in order to be eligible to gain access to the trust funds.
Another suggestion is if your estate is valued in the range of at least $100,000. Much less and the hassle of a living trust is not always worth the effort. If you have a large estate, then having a living trust can help reduce the tax burden on yourself as well as your beneficiaries. You should also consider that having a very large estate wrapped up in probate could mean someone will start to challenge your will. If you will is successfully challenged that your wishes are no longer being followed. With a living trust you are sure that your wishes are being followed exactly. If you own real physical property such as real estate then a living trust is also a good idea as well. If you own multiple pieces of property, then using a living trust is an even smarter idea. By wrapping the majority if not all of your real estate or real property into a living trust you are helping ensure it will be protected, reduce the need to list it in the will, reduce the possibility of someone receiving the property that you do not wish to have it, and reduce the tax burden. If you feel that a living trust is a good idea for your situation, then deciding between a revocable or irrevocable trust is your next step. Often you should consult with a lawyer before starting this step to ensure you are getting the best advice possible. You should always discuss your options fully with your lawyer as well as your spouse to ensure that all of your wishes are decided before starting to structure a living trust. Remember, making changes is easier and cheaper before signing all of the paperwork. Also remember, while some trusts can be changed, you cannot change an irrevocable living trust. Once you sign the papers to create the trust you cannot change your mind. For these reasons, it is important to ensure that using a living trust is the best option for you and your estate. There is certainly no reason to go to the trouble of creating a living trust if you only have a very small estate. |