When someone close to us passes away, we all reflect on life and what our purpose here on earth is. Some people look to religion and believe in the hereafter, some are spiritual, and then there are some who believe there is nothingness after death. Whatever your belief, the fact of the matter is that every person will taste death and there is no escape from it whether it happens today, tomorrow, or decades from now.
A family friend in California is currently dealing with a death in the family at the moment and they are dealing with a headache regarding the assets left behind and all of the paperwork, fees, and lawyers involved. Even when you’re in the grave, the government still manages to reach into your pockets. Hearing about the situation got me thinking about living trusts.
People usually wait to write a will or living trust once they reach an elderly age but life can be cut short in an instant and it’s something to consider while you are still young and able. Forming a living trust is never too early for any adult with assets, says a California living trust attorney in Orange County. So let’s look at what a living trust is and the advantages of it.
What Is A Living Trust
A living trust is a legal document created by a grantor (you) during your lifetime. Much like a will, this document essentially spells out exactly what your desires are regarding your dependents, assets, and your heirs. While a will becomes effective only after you have passed away and the will has entered into probate, a living trust actually bypasses the time-consuming and costly process of probate. At the time of your death, your successor trustee (similar role as an executor of a will) can carry out your specific instructions as documented in the living trust. Or while you are alive but incapacitated due to illness, the successor trustee can handle your legal affairs, finances, and healthcare.
A Few Advantages of Living Trusts
Hassles of Probate:
No person will want his/her family to go through hardships and headaches after their passing away. A living trust gives your family the feeling of security and they know all the specifics are written out in advance without having to dealing with the hassles of Probate. All of the decisions are made in advance without having to burden someone with being the executor of an estate. Or perhaps heirs trying to second guess the intent.
Speedy Transfer Of Property:
The settlement of the estate is quick, painless, and delay-free with a living trust and done so according to your wishes. Because the transfer of property is completed by family and not the legal system, the transfer of property can take place relatively quickly, in many cases only a few weeks.
Privacy
With living trusts, the size and distribution of the estate can be kept confidential, unlike probate proceedings which are matters of public record.
Less Challenged:
A very common trend these days is that Wills get challenged by disappointed or greedy relatives. They will usually use the grounds of undue influence or mental incompetence. This becomes difficult to prove when a living trust is in place while the creator is alive.
I never really planned that far ahead besides putting some money aside in a retirement fund. Regardless of your age, if you have assets then you should probably consider setting up a living trust. Your family will thank you for it and you won’t have to worry about the hassles they have to deal with after your passing.
