It is highly advisable to have a written legal document detailing how you would like to distribute your assets once your pass. Our team of Tampa lawyers is here to help. What’s the difference between a will and a living trust and why should you set up a living trust? Here are some reasons why our Tampa lawyers believe a living trust could benefit you.
Living Trust vs Will
A living trust is a legal document that places your assets in a trust for your benefit during your lifetime. Upon your death, the assets are transferred to your successor trustee, a trusted representative that you chose, to then be distributed as you wished. A will is just your plan of distribution. Our Tampa lawyers agree that you will see three major advantages to a living trust below.
- Avoid Probate
A living trust avoids probate, which are the court proceedings where your assets are distributed. Through a will this process could take a while. A living trust bypasses this, and your assets are distributed much faster. It could just take weeks for your assets to be distributed to your beneficiaries whereas a will in probate could take months or even years. Consider this when working on your estate plan.
- Save Money
It does depend on your financial situation and what makes the most sense to do. A living trust will cost more because of its complexity. You also have to transfer over your assets since you must actually fund the trust. A will does cost less to draft but as mentioned previously, it will have to go through probate. A living trust can save you money because it won’t have to cover probate costs. However, court costs could be very small if the will is uncontested.But, if there are contests, living Trusts Tampa tend to hold up better in court. Additionally, simple estate plans for young couples with no children or no significant assents, probably won’t find it financially beneficial to have a living trust.
If you are looking for privacy, then a living trust may be for you. A will is public record and therefore all transactions are open to the public. A living trust is private and won’t detail the distribution of your assets. So it is really up to your privacy preferences.
There are also other benefits to having a living trust. For example, if you become incapacitated, your trustee can act on your behalf. This also allows your trustee to manage other affairs without having a court intervention, since you stated your wish that they act on your behalf. This is also revocable if you wish to dispute your incapacity.
These are just some of the benefits for having a living trust. It does depend on your financial situation and whether or not it makes sense to have one. Generally speaking, it is always a good idea to meet with a lawyer to have them advise you on your estate plan. Our Tampa lawyers are very capable of assisting you in this important decision. Feel free to contact us or visit our website for more information.