When considering the pros and cons of including a living trust in your estate plan, you may find yourself looking closely at the financial details. Are you really going to save your family money by creating a living trust? Is there anything that could cost you over the long run?
With so many questions to consider, the best thing you can do is schedule an appointment with a local estate planning attorney. This person can review your current plan, help you understand the financial considerations of a living trust, and work with you to create this document if you decide that it is right for you.
Here are several money-related details to keep in mind:
1. It costs money to create and fund a living trust. Just the same as any other part of the estate planning process, you will need to hire an attorney who can show you through the many steps. On top of this, funding your living trust takes money, although not as much as many people believe.
Note: creating and setting up a living trust is typically more expensive and time consuming than a will.
2. Help your family avoid the probate process. This is the top benefit of creating a living trust. When you pass on, you don’t want your family to be faced with the probate process as it can take a lot of time to unwind. Additionally, probate can cost a lot of money.
3. Gives you a reason to organize your finances. Many people think they have their finances in order until they look into the process of creating a living trust. It is then that they realize just how far behind they really are.
As you get started with this, you will find that you have to organize your finances. This includes everything from knowing how your home is titled to retirement account beneficiaries – and that is just the start.
If you are still interested in creating a living trust, you now have a clear idea of how your finances will be impacted. Like most, you probably have some questions on your mind, such as: does a living trust make sense for somebody in my financial situation?
When you contact an estate planning attorney, it will not be long before you are learning more about the financial implications of a living trust, including whether or not you and your family could benefit.