05 Jan New Year’s Resolution – Set Up Your Living Trust
New Year’s Resolution – Set Up Your Living Trust
Are you looking for inspiration for a New Year’s resolution for 2023? Consider establishing a living trust. We know estate planning is probably not at the top of anyone’s resolution list, but a living trust can be a worthwhile investment for yourself and your loved ones.
What is a Living Trust?
A living trust is a fund or account that can hold your assets while you are alive. There are numerous benefits to placing your property into a trust’s name instead of your own, and you can dictate how the assets in your trust will be distributed upon your death. You can place many things in your living trust, including real estate, vehicles, jewelry, intellectual property, and bank accounts.
Benefits of a Living Trust
So, why should you consider creating a living trust a priority in 2023? You likely already know that providing for your family’s financial future and other loved ones who depend on you is crucial. A living trust can help you do that, and it provides a few other benefits, too.
When you pass away, the property placed in your trust can avoid costly and time-consuming probate. This saves your loved ones from prolonging the process and allows them to receive the assets you left for them sooner. While probate in California generally takes at least a year and can take much longer in some cases, distributing trust assets can often be done in just a few weeks, depending on the situation.
While initially setting up a living trust will likely cause you to incur some costs, they are a cheaper option in the long run. By transferring your property out of your name and into the trust’s name, your estate will save a tremendous amount of money on probate fees – potentially tens of thousands of dollars.
Probating a will is not a private process, and details of your estate and beneficiaries can become public. Your will is considered a public record, so once the court proceedings begin, these details become public, too. A living trust adds an extra benefit because it is not made public. The assets, beneficiaries, and property disbursements remain private when handled through a trust.
Creating a will provides you with a certain level of control over how your estate is handled upon death. However, this control is limited. A living trust gives you more say in what happens to your estate’s property after you pass. For example, if you want your grandchildren to inherit only after they complete college, you can include that stipulation.
Anytime is a good time to start estate planning, but the beginning of a new year is the perfect opportunity for a fresh start. With a living trust, you can begin the next chapter of your life with an added layer of financial protection for your loved ones and some extra peace of mind for yourself.
Guideway Legal offers document preparation services for a myriad of estate planning needs. We provide stellar service and expert guidance at a fraction of the cost of an attorney, so reach out to us today!