Writing a will is enough to divide and transfer the assets in your sole name after you’re gone. However, if you want more control over your assets, a trust may be a better option. The following guide explains more about the benefits of transferring assets through a living trust.
When you write a will, the beneficiaries receive their entire inheritance as soon as probate is closed. However, a trust is a separate legal entity that holds the assets within until the terms of the trust direct them to be distributed. This advantage gives you the power to decide when certain belongings are distributed to the heirs.
For instance, you may decide that the beneficiaries should receive monthly payments or receive a certain sum when they graduate college. The trustee can also invest your wealth so that the estate continues to grow.
Most estates have to go through probate, which is the legal process of settling a decedent’s debts and executing the instructions in their will. This process can be lengthy and potentially costly if there needs to be a lot of legal work involved.
Estates organized under a trust can avoid probate, potentially shortening the time until beneficiaries receive their inheritance. Further, the trust allows for continuity of management, meaning that a successor trustee can step in and carry on the management of your estate without a lengthy delay in obtaining a court appointment.
This rule is handy for anyone with complex investments or property in several states. Otherwise, the executor will have to complete probate for each jurisdiction in which you own property.
As soon as wills are submitted to the court, they become matters of public record. Anyone who files a request with the court will be able to see how many assets you owned and who you bequeathed them to after your passing.
Since trusts don’t have to go through probate, the contents are shielded from public view. As a result, a trust is also a valuable legal tool for anyone who values their privacy.
If you need help from an estate planning professional, turn to Trailhead Estate Planning in Signal Mountain, TN. This business serves families throughout the area. Attorney Peter Harrison has the experience to help you create an estate plan that reflects your unique needs. Visit the website to learn more about trusts, or call (423) 228-7029 to schedule a consultation.
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