Living Trust

Benefits Of A Living Trust

Find out what the many benefits of a living trust are, including those that are specific to estates worth over $1,000,000.

There are many benefits to having a living trust. Some of these are advantages that can benefit everyone, while other benefits of a living trust are for estates in a certain financial category.

The following are a list of benefits of a living trust that affect anyone and everyone who has one:

• A trust can avoid the probate process, thus passing the assets more quickly and avoiding the time and expense usually occurring with probate.

• The trust can utilize federal estate tax exemptions allowed for both the husband and the wife, thus maximizing your unified credit.

• Unlike a Will, a trust is a private document and is not generally public record.

• A trust can provide uninterrupted management of the estate should you and your spouse become incapacitated.

• A Living Trust is valid in every state.

For those estates valued at over $1,000,000, the benefits of a living trust are listed below:

• Deferral of, or complete elimination of, Federal estate taxes without having to make charitable donations from the estate,

• Probate avoidance, at least the part of probate used to determine ownership of assets,

• Ability to dictate the terms of asset transfer,

• A deferral of claims to satisfy the debts of the 1st spouse to die until at least the surviving spouse passes away or longer,

• The ability to exclude the deceased spouse’s share of the estate when the surviving spouse needs to apply to the government for additional health care benefits,

• The ability to also avoid probate and to dictate terms of asset transfer,

• The trust remains dynamic in that provisions regarding your share of the trust assets can always be changed,

• The document remains private in that it’s kept out of the courts so no public review.

For estates valued at under $1,000,000, the only thing on the list above that does not affect you is the estate tax information. And, the only reason this does not affect you is because an estate that is valued at under this amount isn’t subject to federal estate taxes.

No matter what size estate you have, there are many benefits that can be reached through a living trust. Consult with an estate planning attorney or professional to find out more details about the benefits that can be yours through a living trust.