A living trust is one of the most common types of estate planning tools and, unfortunately, it is also frequently misunderstood. A living trust is designed to allow the person who wrote it to maintain control over the trust property until his or her death. The trust is then given to a successor who was appointed by the writer of the trust when it was created.
This seems fairly straightforward, but there are a lot of misunderstandings about living trusts, so take a moment to learn the truth about this helpful estate planning tool.
The Truth About Living Trusts
Even if you believe you have a clear idea of what living trusts are, it is possible that you are only familiar with some of the misconceptions that are prevalent in our society.
Here are some of the most common misconceptions and myths regarding living trusts:
- Only the wealthy need living trusts: One of the biggest misconceptions about living trusts is that only the wealthy need such a tool to control their assets and property and ensure their wishes are obeyed in the aftermath of their death. However, even those within the middle class stand to benefit from creating a living trust for their estate planning needs.
- Beneficiaries are the only individuals who benefit from a living trust: Yes, living trusts exist to ensure one’s property and assets are more easily distributed among heirs, but living trusts also make it easier for one’s affairs to be handled in the event that he or she becomes incapacitated.
- You will be unable to access any of the funds that are in your living trust: The reason why a living trust has the word “living” in its name is due to the fact that it can be altered at any time. Therefore, you can access the assets or funds in your living trust, whether it be for yourself or someone else.
- A living trust allows you to avoid probate: Typically, the assets within a living trust are able to easily avoid probate. That said, if you forego hiring an experienced legal professional to help you create your trust, some assets might get left out. Anything that is not included in your living trust will need to go through probate.
- It can be expensive to create a living trust: Hiring a specialized estate planning attorney is not out of your reach and the benefits of hiring an attorney to help you create a living trust well outweigh the costs in the long run.
Contact an Estate Planning Attorney Today!
If you are considering a living trust, hire an experienced estate planning attorney to guide you through the process and ensure it effectively addresses your needs and goals. At Drexler Law, our estate planning team is committed to helping clients understand the process of creating a living trust, so that they can easily remain in control of their assets and have them appropriately divided among their heirs, according to their wishes, upon their death/
Contact us at (719) 259-0050 today for a consultation.