Tue, 16 May 2023 00:21:42 -0700WeeblyFri, 12 Feb 2016 22:48:57 GMThttp://pamamlunglaw.com/trusts/why-would-i-want-a-living-trustReason #1: Protecting Property for Beneficiaries 
 A trust allows me to efficiently pass my assets at death to those I care about, while at the same time, protecting those assets for their benefit.  While some beneficiaries are completely ready and able to handle a significant inheritance immediately, quite a few are not.  A typical scenario would be protecting assets for children under age 21.  However, they are not the only ones who squander money.  Most experts agree that no one under the age of 25 should be given an inheritance outright.  At the same time, there are many people over the age of 25 that should not have immediate and unrestricted access to an inheritance either.  

Regardless of age, any beneficiary may experience unforeseen situations in which it would be best to have money in a trust rather than an outright gift.  Some of these are divorce, disability, and lawsuits. 

Reason #2: Avoiding Probate
Property titled to my revocable living trust will NOT go through probate when I die.  Probate, the court process through which property is transferred to heirs at death, can be long, expensive, and public.  Although the process of probate may benefit some families in difficult circumstances, most estates are handled more efficiently through a trust.  I would advise that if your estate is valued at more than $100,000, then you should seriously consider the advantages of a revocable living trust, especially if any of the other reasons apply to you. 
Alternatives that avoid probate, often create far more problems (and potential expense) than they solve.  An attorney can also help create combinations of transfer on death alternatives with trusts for greater efficiency and effectiveness.

Reason #3: Ensuring Privacy
Probate is a public process.  When a person dies and a will is filed, anyone can look at the will (and all the financial information filed with the probate court).  Revocable living trusts on the other hand are private; they don’t get filed with the probate court, and no third party gets to look at them unless the grantor or the trustee allows it.  Those concerned with privacy may, therefore, want to consider a revocable living trust.

Reason #4: Avoiding Will Contests
Wills are far more likely to be contested than revocable living trusts.  A disgruntled family member only has to object when the will is presented for probate.  On the other hand, contesting a revocable living trust generally involves a substantial commitment of time and money.  Even though most will contests are unsuccessful, they are time consuming and expensive.  The best way to avoid them is through a revocable living trust.

Reason #5:  Managing Property During Incapacity
We often worry about our elderly parents or relatives when they are having difficulty managing their bills and finances.  But in many cases, we are powerless to help them because all of their property is in their own name.  Unfortunately, when there was no prior planning, the only option we have upon their incompetency is filing a guardianship proceeding with the probate court.  These proceedings can be expensive and emotionally damaging. Fortunately, a revocable living trust can be used to avoid such a proceeding.

Reason #6:  Estate Taxes
When I began practicing law in 1991, the reduction of estate taxes was the primary reason one needed a revocable living trust.  Due to massive changes in federal estate tax law, the reduction of estate taxes has taken a backseat to the other reasons.  However, due to the uncertain future of federal and state estate taxes, today when I and other attorneys prepare revocable living trusts we typically will still include flexibility to take advantage of certain estate tax credits that may still be allowed under the tax laws should that be needed in the future.  By planning for the unknown future of estate tax law, we provide a very significant potential savings should laws change again.   If you would like more information about estate taxes, I’d be happy to give you more details.
 
In Conclusion:
When we meet I will be happy to help you determine whether a revocable living trust is right for you.  Many people worry that a trust may cost too much; however, the fees that I charge to create a trust to protect your beneficiaries and provide the other benefits outlined here is actually only a few hundred dollars more than preparing a properly drafted will.  When combined with an hour of two of follow-up (which many clients prefer to do on their own), the costs of probate are avoided, saving thousands of dollars.
Alternatively, if you determine that a revocable living trust is not right for you, I will provide you with a personalized last will and testament, general durable power of attorney, and related advice and documents that will help you to plan your estate in a manner that best suits you and your intended beneficiaries.

Pamela K. Amlung
Pam@PamAmlungLaw.com
(513) 312-3386 
© Pamela K. Amlung, 2015

DISCLAIMER: The information contained in this document is intended for informational purposes only and should not be construed as legal advice. Please seek legal counsel for advice on any legal matter.
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