Living trust attorneys can help you to determine whether it makes sense in your personal situation to create some type of trust. There are different kinds of trusts and while many people assume that only the wealthy need to worry about trust creation, the reality is that many of the trusts that you can create are very helpful to middle class families and can serve an important purpose. Unsworth LaPlante, PLLC can assist you in understanding the types of trusts that you could create, can explain what different kinds of trusts do, and can help you with the process of creating a trust if trust creation is right for you.
Unsworth LaPlante, PLLC has helped many clients to make a living trust. We have also helped many clients to make an irrevocable trust. A living trust is an especially popular option for clients to create as part of the estate planning process because of the many benefits that this trust type provides.
There are a few key reasons why you may wish to make a living trust, including the following five reasons.
1. A Living Trust Can Protect Your Wealth from Certain Sources of Loss
A living trust will not protect your wealth from all losses. For example, if you must try to get Medicaid to pay for your nursing home care because no other insurance (including Medicare) will pay for custodial care (basic routine care), the assets in your living trust will still count as financial resources for purposes of determining Medicaid eligibility. Your wealth could thus prevent you from qualifying for care you need. This could mean you’d be forced to impoverish yourself by paying for care before you eventually owned so little that it would be possible to get means-tested Medicaid benefits. While a living trust won’t prevent this, a living trust does provide some important protection from loss, including by giving you the ability to name a trusted person to act on your behalf and manage trust assets if something happens to you and you become incapacitated.
2. A Living Trust Can Allow Your Assets to Transfer Outside of the Probate Process
Making a living trust is also a good idea to spare your family from having to go through the probate process. The probate process can take a long while and can be a major hassle for those waiting to inherit. The creation of a living trust helps with asset transfers after death because assets transfer through trust administration instead of the probate process. The trust administration process is much quicker. However, you should be aware that assets passed through the trust administration process will generally still be considered part of your taxable estate for purposes of determining if you will pay estate tax.
3. A Living Trust Can Make it Possible for Your Loved Ones to Inherit in a More Timely Manner
The probate process can be a long, time, consuming process, and Investopedia indicates that the probate process can take about a year or sometimes longer, depending upon estate complexity. A year-long wait to inherit could create major hardship for family members counting on an inheritance. Passing assets through the trust administration process is much faster so your family could inherit more quickly if you make a living trust.
4. A Living Trust Can Keep The Transfer of Your Assets Private
If your estate is probated and assets have to transfer in court, information about your finances can become public record. Many people prefer to keep details about their financial situation private, so having court records containing your information can be disturbing. When your assets pass through the trust administration process, there are no concerns about your personal financial affairs becoming public because the process can be much more private since it is handled outside of court.
5. A Living Trust Can Maximize the Chances Your Wealth Will Transfer In Accordance with Your Instructions
When you make a last will and testament, there is a chance someone could successfully contest it and thus invalidate your wishes. While a trust could possibly be contested, trusts require your ongoing involvement during your lifetime, in most cases. This ongoing involvement makes it harder for someone to successfully contest your trust and argue it is not a true reflection of your wishes.
Getting Help from Living Trust Attorneys
Unsworth LaPlante, PLLC has helped many clients to make a living trust. If you are interested in taking advantage of the many benefits that the creation of a living trust can offer to you, you should give us a call today. Our firm will assist you in evaluating your situation to determine if trust creation is the right choice for you and to determine what kind of trust would make the most sense for you to create. We’ll also assist you with the creation of your trust document and guidance in funding your trust.
To find out more about how our firm can assist you, join us for a free seminar. You can also give us a call at (802) 879-7133 or contact us online to find out more about the ways in which our legal team can help you.