January 18, 2017

Benefits of Holding Property In A Living Trust

The first benefit is should you become incapacitated, you have spelled out how the trustee should manage your trust assets in the terms of the document and far better than the use of a power of attorney.

Benefits are:

  1. It is honored and valid in all 50 states
  2. Banks and brokerage houses consider it valid
  3. Avoids probate costs and delays.   When the Trustor dies, the assets are transferred by the alternate Trustee and with minimal expense to the designated beneficiaries.
  4. Avoid possible conservatorship.   A major living trust benefit occurs if the Trustor becomes incompetent.   Then the alternate Trustee takes over management of the trust assets without court costs and delays of appointing a conservator.
  5. The living trust terms can be changed or revoked at any time until the Trustor
  6. A living trust offers a level of privacy vs. a will.

Each individual has difference circumstances.  While a living trust makes sense for some people, wills are just fine for others. A general rule among tax planners is that the larger the value of the estate, the greater need there is for a living trust.   We strongly suggest that you consult with your financial advisor, CPA, or attorney what is best for your situation.