Although you may struggle with the idea of creating an estate plan, it's something you need to do in order to put your mind at ease. Furthermore, with the right plan in place, your loved ones won't feel nearly as stressed.
There are many things that make up a comprehensive estate plan. While no two people are the same in the approach they take, it's critical to at least consider all of your options.
A living trust is often the perfect addition to an estate plan, as there are many benefits of taking this approach to estate planning.
The terms and conditions of the trust are laid out in the document itself, making it easy for your trustee to understand exactly what they need to do upon your death.
What are the benefits?
Many people opt for nothing more than a will when creating an estate plan. Even though this is common, it may not be the best approach. It often makes sense to consider a living trust, thanks to the following benefits:
- Financial privacy. Unlike a will, a living trust is a private document. It never becomes public record. If privacy is important to you, choosing a living trust instead of a will makes good sense.
- Help in the event of incapacitation. If you are incapacitated as the result of an injury or illness, your living trust can kick in to regulate the use of your assets.
- Reducing taxes. Saving money on taxes is something that everyone wants to do, both while they are alive and after they pass on.
Does it cost more?
You may shy away from creating a living trust because of the up front cost. Although it typically costs more to create than a will, you get a lot in return for your money.
Compare the cost of both options, while focusing on the pros and cons of each. This will help you decide if spending the extra money up front is worth it.
Any form of estate planning, regardless of your goals and financial situation, can be challenging. If you learn more about all of your options, including the impact your decisions will have on your loved ones, it's easier to make final decisions.