Aren’t Living Trusts Only For Really Rich People?
Many people think of trusts and then they think of “trust fund” kids. As a result, living trusts and similar types of arrangements have gotten a reputation for being tools of the very rich. You do not need to be extremely wealthy to take advantage of what a trust has to offer.
Living trusts can help people protect their assets and ensure that they won’t go through probate. This is a process where assets with no clear beneficiaries have to be distributed through the court. As long as you make it clear who should get which assets, then your family can avoid the probate process entirely. This alone is more than enough reason to set up a living trust, even if you are not in the one percent.
Isn’t it Expensive to Set Up Living Trusts?
All aspects of estate planning will cost you some money, but think about it as an investment. If you make these plans now, you and your loved ones will have less to stress about in the future. Setting up living trusts can cost money, but the probate process can result in its own fees and expenses too. You are better off spending some money now and making life easier for your beneficiaries later on.
Don’t I Have to Give Up Control Over My Assets?
Another common misconception is that living trusts cannot be controlled by the person who sets them up. A trustee needs to be assigned and that person would decide what happens to all of your assets.
You can make yourself your own trustee though! You can continue to have control over your assets and finances as long as you are competent and able to handle them. People often choose successor trustees who can take over the management of living trusts for them once they have passed away or reached a stage of their life where they are no longer considered capable of looking after things themself.
Talk to An Estate Planning Lawyer
So place those misconceptions aside and schedule a consultation with our team today. A lawyer from Herting Law, PLLC would be glad to tell you more about living trusts and whether one is a good fit for your estate plan.
