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Is It A Benefit To You To Have A Living Trust In Your Estate Plan?

There certainly are advantages to a living trust. However whether it is a right decision to incorporate a living trust in your estate plan is a case by case analysis. Just like everything else it’s not one size fits all. Clients often come in wanting some level of planning but what is going to work with their objectives of transferring their assets, planning for estate taxes or incapacity or surrendering total or partial control over their assets is going to depend upon their end goals. It all begins with an inquiry and exploring various legal avenues in achieving your intended goals.

Revocable living trust is one such vehicle that can assist clients in obtaining their objectives. It helps in continuity in management of assets should the client become incapacitated. Although the revocable trust by itself has no effect on your estate taxes, it can be a conduit to do some estate tax planning. It is often used to avoid probate. What does that mean? It means that you do not have to go to court to transfer the assets of a loved one after he or she has passed away. If you go through the court process it becomes a public record which some clients want to avoid and maintain their privacy and probably avoid litigated court proceeding. The key however is to set up the trust correctly. There is no point in setting up a trust that will not achieve the intended result and will cause your plan to fail.

Lack of planning can lead to unintended consequences. The revocable trust is a good option for some clients. It must be drafted clearly and with care that the clients are being served well. If you want to discuss whether such a trust is viable for your estate planning needs, call us so we can help you decide.