What Are the Advantages of Establishing a Living Trust?

You might presume that a last will and testament is the best, or only, way to distribute assets among loved ones upon your death. However, other options exist. Revocable living trusts are popular estate planning instruments for several reasons. These types of trusts offer great flexibility and can make things easier on your family when the time comes to transfer property to them.

A person, referred to as the grantor, can shift their assets into a living trust that they create. With assistance from a qualified estate planning attorney, this is a relatively simple process. The grantor can maintain access to assets in the trust for the rest of their lives, and then direct where the remaining property should go upon their death. As a revocable trust, the grantor can change the terms of the instrument at any time or dissolve the trust entirely if they wish. Moreover, the grantor can also serve as trustee, which gives them control over the management of trust assets during their lifetime.

There are several reasons why you might wish to make a living trust a key part of over your overall estate plan, including the following: 

• Probate avoidance — Depending on the value of the estate and other factors, your heirs might have to wait through months of probate before they actually receiver the property you’ve left to them. This might also involve significant expense and aggravation. Assets passed through a trust go directly to beneficiaries without any probate process.
• Privacy — Administering an estate is a public court proceeding. Individuals and families who seek to maintain their privacy often choose to transfer property through a trust to avoid scrutiny from outsiders. 
• Incapacity planning —Unlike a will, which does not take effect until the testator dies, a trust can serve a function while the grantor is still living. You can include language naming a contingent trustee in the event that you are incapacitated due to illness, injury or old age. This person can manage trust assets for benefit and then direct that what remains go to the beneficiaries you named once you pass away.

Don’t make the false assumption that a trust is only useful for people with extraordinary wealth. Revocable living trusts offer these advantages and others to families within all income groups. 

The Collierville Law Firm has been helping people in the greater Memphis area create revocable living trusts and other estate planning documents for three decades. Please call 901-614-0318 or contact us online to make an appointment with a knowledgeable Tennessee attorney.